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By Maricel E. Burgonio, Reporter
State-owned Development Bank of the Philippines
(DBP) will raise funds from the public by issuing tier-2 capital to
boost its lending business, according to Bangko Sentral ng Pilipinas
(BSP).
Nestor Espenilla Jr., BSP deputy governor, told
reporters that the Monetary Board (MB) has approved the move of DBP
to issue P7.65 billion lower tier-2 capital.
This will complete DBP’s plan to raise
P10-billion worth of fresh funding. The bank was able to raise only
P2.35 billion in January 17, 2006.
The proceeds will be used as additional capital
to support the bank’s infrastructure, social services and
environment programs.
Reynaldo David, DBP president, earlier said the
notes offering should raise enough capital to support the bank’s
developmental initiatives particularly its new thrusts such as the
overseas remittance business, OFW loan program, and micro-finance
operations.
Moreover, it can be used as guaranteed funding
in case Official Development Assistance funds dry up.
The MB earlier approved DBP to prepay its P364
million worth of loans to Nordic Development and Korean Exim.
David said DBP will prepay P168 million loan to
Nordic Development, which was obtained in May 15,1992 and will
mature on January 15, 2032.
For Korean Exim, DBP will prepay loan worth P196
million, which was obtained in August 2005 with maturity of August
2012.
“It’s not that we just want to prepay. We
need to prepay because the borrowers have paid,” David said.
He said the bank will also prepay the
P1.25-billion loan obtained from World Bank’s International Bank
for Reconstruction and Development. These loans will mature in
August 2009 and 2012.
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