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DBP grew loan portfolio to P18.8B as of end-Oct

State-run Development Bank of the Philippines’ (DBP) loan portfolio grew by over P18.8 billion in the first 10 months as it continues to extend financing to various sectors, including micro, small and medium enterprises (MSMEs).

“For 2020, DBP has even grown its loan portfolio by more than 5 percent as of end-October since the end of 2019 or by more than P18.8 billion during this period,” DBP President and Chief Executive Officer Emmanuel G. Herbosa said during a listing ceremony last week.

Last year, the bank’s loan portfolio reached P414.06 billion, which showed a 25.88-percent uptick from the P328.92 billion in 2018. The biggest chunk—46.2 percent or P164.8 billion—went to the infrastructure and logistics sector.

“Undaunted by the current economic environment, DBP remains firm and focused in supporting businesses and industries through our various lending programs from the MSMEs to other strategically established companies,” he said.

Herbosa earlier reported that the bank provided P364.4-billion worth of borrowings in the first half, which was a 15.6-percent increase from P315.13 billion in the same period last year.

Of this amount, bulk or P165.3 billion was given to the infrastructure and logistics sector. The social services, environment projects and MSMEs took P77.1 billion, P43. 6 billion and P29.6 billion, respectively.

The DBP chief attributed the surge in borrowings to “aggressive lending activities” by its 30 lending units across the country despite the current economic slump.

In July, the state-owned bank announced it would streamline its lending programs and reallocate funds to initiatives strengthening “its positioning as the country’s infrastructure bank.”

Bond listing

Last week, DBP listed its P21-billion fixed rates series 2 bonds with the Philippine Dealing Exchange (PDEx).

The bonds due in 2022 carry an interest rate of 2.5 percent.

“With the additional funds to be raised at our disposal for development initiatives, DBP can further support projects and investments that generate employment and ensure access to basic access to goods and services and address or mitigate a specific social issue to achieve positive social outcomes,” Herbosa said.

Standard Chartered Bank was tapped to be the transaction’s issue manager. It, along with China Bank Capital Corp., was also the joint lead arrangers and bookrunners.

The selling agents are the DBP, Amalgamated Investment Bancorporation, China Bank Corp., China Bank Capital Corp. and Standard Chartered Bank.

“We look forward to continue serving the financial requirements for our people and our businesses in 2021 backed by the tremendous support received from the market in raising P21 billion for the DBP series 2 bonds,” he said.

Last year, DBP raked in P18.125 billion from sustainability bond issuance under the same bond program. Proceeds were allocated to projects on economic inclusion; climate change mitigation and adaptation, natural resource conservation and pollution control and prevention and other social development initiatives.

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