DBP aims to earn P5B via Tier-2 notes sale
Development Bank of the Philippines hopes to raise P5 billion from the sale of Tier-2 notes to expand its capital base and support its lending activities.
In a statement, the government-owned bank said the notes, which were launched Thursday, would mature in 2022, but holders would have the option to redeem their investments in 2017.
DBP claimed investing in these notes was prudent given the bank’s favorable credit ratings. DBP was given a rating of BB+ by Fitch and Standard & Poor’s. The rating indicates low to moderate risk.
“DBP’s developmental side is kicking into high gear. We have a strong balance sheet that provides us with solid options,” DBP president Francisco del Rosario Jr. said in the statement.
Earlier, Del Rosario said the bank aimed to further accelerate growth of its lending in response to the government’s call for state-owned firms to help stimulate the economy.
DBP’s total loan portfolio hit P180 billion by the end of last year, up by about 16 percent from P155 billion in the previous year.
Last year, the bank posted a net income of P4.02 billion, up by 9 percent from P3.68 billion in the previous year.
DBP remitted last month P4 billion in dividends to the national coffers. This was the highest dividend remitted by the bank to the government in its 65 years of operation.
Del Rosario said DBP was targeting a net income this year of between P4.5 billion and P5 billion.
He said income was expected to rise again this year largely because of its plan to engage in more developmental lending activities.
