State-owned Development Bank of the Philippines (DBP) rides on the back of strong investor demand as it moves to raise the issue size of its first Basel III compliant Tier 2 Fixed Rate Unsecured Subordinated Notes to P10 billion from P5 billion.
Sole global coordinator for the issue, Standard Chartered Bank, earlier announced the early close of offering on November 8, ahead of the closing of the offer period to the general public originally set on November 13.
DBP president and chief executive officer Gil A. Buenaventura said: “DBP’s successful foray into Basel III-compliant Tier 2 bonds was driven by consistently strong investor support, an indication of their trust and faith in the bank and its current management and board. The favorable reception by the market of our issue and strong overall performance of the bank are due in no small measure to the good governance program we’ve implemented in all aspects of the bank’s operations.”
DBP’s Tier 2 Notes will mature 10 years from issuance on Nov. 20, 2013. DBP has an option to redeem the Tier 2 unsecured subordinated notes after 5 years from issue date, subject to prior approval by the Bangko Sentral ng Pilipinas. DBP also has the option to redeem the notes on any other date prior to maturity but not prior to the 5th anniversary of the issue date, subject to redemption conditions and the required regulatory approval.
The minimum investment size for the notes is P500,000, and additional investments will be available in integral multiples of P10,000. The proceeds replace DBP’s lower Tier 2 Note which was redeemed last Sept. 2, strengthening the bank’s capital base and supporting its various developmental initiatives.
DBP remains a top-rated Philippine bank, with a BBB- rating from Standard and Poor’s and a BB+ rating from Fitch Ratings.