STATE-OWNED Development Bank of the Philippines (DBP) successfully raised P18.125 billion via sustainability bonds to finance eligible projects.

During the listing ceremony in Makati City on Monday, DBP President and CEO Emmanuel G. Herbosa said they raised P18.125 billion in the two-year Series A ASEAN sustainability bonds, which was three times more than the initial P5 billion target.

“This will further enable us to support and spearhead projects in line with the sustainability development goals and allow us to reach a wider network of stakeholders especially in the countryside,” Mr. Herbosa said in his speech.

The debt papers, which are due on 2021, carry a coupon of 4.25% to be paid quarterly, Jose Gabino de Leon Dimayuga, DBP executive vice president, said in a phone message yesterday.

The issuance was the first tranche of the bank’s three-year P50-billion bond program under its Sustainability Finance Framework.

Mr. Herbosa said the proceeds of the fund-raising activity will finance roads, bridges, airports, equipment for public and private hospitals, renewable energy for power plants, schools and provide more working capital for local businesses.

He added that this issue is the first listing of the bank in the Philippine Dealing and Exchange Corp., which will take them “one step closer” to its target of becoming a P1-trillion bank.

“We want to impart the value of nation-building to our investors, and hopefully through this transaction, inspire them to make even greater steps with us, paving the way for sustainable future in generations of Filipinos to come,” he added.

The transaction’s structuring advisor and issuer manager was the Standard Chartered Bank, which also worked with China Bank Capital Corp. as joint lead arrangers.

DBP’s net earnings went up by 12.3% year-on-year in the first six months of the year to P3.1 billion, boosted by lending growth.

The gross loan portfolio of the country’s eighth largest bank in terms of assets rose by a fifth to P368.33 billion in the first half. — Beatrice M. Laforga