To support its various developmental initiatives, state-owned Development Bank of the Philippines (DBP) announced that it will be issuing P5-billion Basel III compliant Tier 2 unsecured subordinated notes.
In a statement, the DBP said that the unsecured subordinated notes will qualify as Tier 2 capital of the bank, and will mature 10 years from issuance.
“DBP has an option to redeem the Tier 2 unsecured subordinated notes after five years from issue date, subject to prior approval by the Bangko Sentral ng Pilipinas,” it stated.
The bank added that it also has the option to redeem the notes on any other date prior to maturity, but not prior to the fifth anniversary of the issue date, subject to redemption conditions and the required regulatory approval.
Furthermore, the DBP noted that the minimum investment size for the notes is P500,000, and additional investments shall further be available in integral multiples of P100,000, while the tentative issue date is on November 15, 2013.
With a “BBB-” rating from Standard and Poor’s and a “BB+” rating from Fitch Ratings, DBP prides itself as a top-rated Philippine bank, as it registered a 46-percent increase in its net income for the first half of 2013, amounting to P2.8 billion on the strength of increases in loan portfolio and deposits.
DBP has appointed Standard Chartered Bank as the sole global coordinator and one of the joint lead arrangers and joint bookrunners.
BPI Capital Corp., Deutsche Bank AG Manila Branch, PNB Capital and Investment Corp. are the other joint lead arrangers and joint bookrunners.
SB Capital Investment Corp. is the co-lead manager and selling agent while Multinational Investment Corp. is the market maker and selling agent.