• DBP calls on P6.5-B Lower Tier 2 Capital

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    State-owned Development Bank of the Philippines (DBP) exercised its call option on the P6.5-billion unsecured subordinated debt (UnSD) on September 2.

    In a statement, DBP said that it is qualifying on the Lower Tier 2 Capital (UnSD-LT2) it issued on September 1, 2008, with a coupon rate of 7.75 percent per annum.

    “Previous UnSD-LT2 holders, along with new investors, have expressed interest in investment outlets including new DBP issuances,” it said.

    It added that the bank is now processing the issuance of an instrument that is compliant with the new Basel III Implementing Guidelines on Minimum Capital Requirements.

    The said Basel III guideline, the bank said, was issued by the Bangko Sentral ng Pilipinas early 2013 through Circular 781, and which will take effect on January 1, 2014.

    “Consistent with its standing as a leading development financial institution in the region, DBP received this year various international awards and recognition for its programs and credit standing,” it stated.

    The said awards include the Certificate of Merit for the Philippine Water Revolving Fund and Most Outstanding Infrastructure Project for the Connecting Rural Urban Intermodal System Efficiency Program.

    Fitch Ratings in May affirmed DBP’s “BB+” rating based on the bank’s stable deposit basis, satisfactory liquidity, high core capitalization and rising loan reserves, while Standard and Poor’s also upgraded DBP’s long-term issuer credit rating from “BB+” to “BBB“, with stable outlook.

    Mayvelin U. Caraballo

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