DBP issues P5-B Tier 2 notes

MANILA, Philippines - State-run Development Bank of the Philippines (DBP) is issuing P5-billion Basel III compliant Tier 2 unsecured subordinated notes to support its various developmental initiatives.

The Tier 2 unsecured subordinated notes, qualifying as Tier 2 capital of the bank, will have a maturity date of 10 years.

DBP said it 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.

DBP also has the option to redeem the notes on any other date prior to maturity but not prior to the 5th anniversary of the issue date, subject to redemption conditions and the required regulatory approval.

The minimum investment size for the notes is P500,000 and additional investments shall further be available in integral multiples of P100,000. The tentative issue date is on Nov. 15, 2013.

DBP remains a top-rated Philippine bank, with a BBB- rating from Standard and Poor’s and a BB+ rating from Fitch Ratings.

DBP registered a 46 percent increase in net income to P2.8 billion for the first half of 2013, up from P1.9 billion a year ago, 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 for the issuance.

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.

Registry and paying agent is Deutsche Bank AG, Manila Branch – Direct Securities Services while Land Bank of the Philippines-Trust Banking Group is public trustee.