The Development Bank of the Philippines (DBP) said it hopes to raise at least P5 billion from the second tranche of its P50-billion bond program, with the proceeds supporting various environmental projects.
In a statement Friday, the state-run bank said the so-called sustainability bonds will fund renewable energy, green building, clean transportation, energy efficiency, pollution prevention and control, and climate change adaptation projects.
The bonds mature in two years and are priced at 2.500%. The offer period is set to run between Nov. 24 and Dec. 4.
“Even before the onset of the pandemic, we had planned to raise additional funds from our bond program to augment our funding requirements as DBP pushes to lend more to its priority sectors, especially in the wake of the pandemic and the recent typhoons that have struck the country,” DBP President and Chief Executive Officer Emmanuel G. Herbosa said.
Last year, the DBP issued P18.125 billion worth of bonds in the first tranche of the bond program. From these proceeds, 83% supported 15 sustainable and renewable energy projects, while the remainder funded water supply and health care projects.
“Our successful issuance of sustainability bonds last year has further strengthened our resolve to support endeavors that have an impact not only on communities but also on our environment,” Mr. Herbosa said.
The bonds are part of the DBP’s Sustainable Financing Framework which provides guidelines for funding basic infrastructure, housing, employment generation, food security, and socioeconomic empowerment initiatives.
“Apart from offering a safe haven for investment especially during uncertain times, the bonds also provide the public an opportunity to partake in the larger goal of nation-building,” DBP First Vice President for Corporate Finance Francis Nicolas M. Chua said.
It designated as selling agents for the bonds Amalgamated Investment Bancorporation, China Banking Corp., China Bank Capital Corp., and Standard Chartered Bank. — Kathryn Kristina T. Jose