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State-owned Development Bank of the Philippines (DBP) was cited by a renowned international multi-media firm for its bond issuance last year, which was aimed at raising funds to bankroll projects on the environment and financial inclusion, a top official said.
DBP President and Chief Executive Officer Emmanuel G. Herbosa said the bank’s maiden issuance of ASEAN Sustainability Bonds, amounting to P18.125-billion, won as Best Sustainability Bond–Financial Institution in The Asset Country Awards 2020 presented by Hong Kong-based financial publication The Asset.
“We take pride and honor for this achievement as it recognizes DBP’s role as a catalyst for inclusive development,” Herbosa said. “As a development financing institution, DBP has always been at the forefront of sustainable development and environment protection.”
DBP is the seventh largest bank in the country in terms of assets and provides credit support to four strategic sectors of the economy – infrastructure and logistics; micro, small and medium enterprises; environment; social services and community development.
The proceeds from last year’s bond issuance, which was the first bond program exclusively focused on sustainability, were used to fund projects that contribute towards economic inclusion, climate change mitigation and adaptation, natural resource conservation, pollution control and prevention, and other social issues, Herbosa said the P18.125-billion raised, which was upsized from the initial amount of P5-billion, represents the initial tranche of DBP’s P50-billion Bond Program, geared at financing environmental and social projects eligible under the Bank’s Sustainability Finance Framework.
He said 83 percent of the proceeds were allocated to 15 projects in sustainable and renewable energy, while the rest was allocated evenly between initiatives for water supply and sanitation and health care.
“The bond issuance did not only provide for a sound investment but also accorded investors an opportunity for directly partaking in initiatives that advance social and economic advancement,” Herbosa said.
Herbosa said DBP recently raised P21 billion in its second bond issuance to fund various development projects of vital economic sectors, reeling from the ill-effects of the pandemic.
He said net proceeds of the second tranche would be earmarked for financing renewable energy, green buildings, clean transportation, energy efficiency, pollution prevention and control, sustainable water management, climate change adaptation, affordable basic infrastructure, affordable housing, food security, and other similar developmental initiatives.
“The second bond issuance would allow us to reach a wider network of stakeholders, especially in the countryside, as we take a step closer to becoming a P1-trillion bank by 2022,” Herbosa added.