DBP raises P11B from oversubscribed dual-tenor bonds

The Development Bank of the Philippines (DBP) raised P11 billion from its dual-tenor fixed-rate notes offering, which was oversubscribed by five-and-a-half times compared to the initial P2-billion program.

DBP issued Series 6A bonds with a tenor of 1.5 years at an annual interest rate of 6.0503%, and Series 6B bonds maturing in three years with an annual interest rate of 6.1294%

This bond issuance, the first time DBP issued dual-tenor bonds, forms part of its efforts to diversify funding sources to boost lending activities.

DBP President Michael O. de Jesus stated that this latest bond issuance reflects market trust in DBP and will support the Marcos administration's economic agenda.

The Finance department is pushing for amendments to DBP’s charter to increase capitalization, allow public listing, and streamline bond issuance processes, with the Senate bill approved on final reading and the House version currently under review.