DBP aims IPO, boosts capital, seeks regulatory relief

The Development Bank of the Philippines (DBP) will seek regulatory relief again this year to boost its capital position despite already meeting its capital requirements.

DBP President Michael O. de Jesus said during the Bangko Sentral ng Pilipinas (BSP) annual reception on Friday, January 10, that the bank aims to exceed minimum capital requirements and is working with the BSP on this request.

The DBP contributed P25 billion as initial seed capital for the Maharlika Investment Corp. and is proposing an increase in authorized capital stock from P35 billion to P300 billion as part of a Senate bill awaiting approval.

DBP also aims to amend its charter over time to conduct an initial public offering (IPO) while focusing on sustainability, with the goal of diversifying funding sources by opening up to private and other government sectors.

The International Monetary Fund (IMF) has urged the government to recapitalize DBP due to its contributions to the Maharlika Investment Fund.