The facility came courtesy of the European Investment Bank (EIB), one of the global lenders consistently extending development loans to government financial institutions (GFIs) such as the DBP.
DBP president and chief executive officer Reynaldo G. David said the facility will focus on development projects involving commercial infrastructure, industries, agro-industry, tourism, related services including leasing and microfinance, health, and urban development. Special emphasis will be given to projects aimed at improvement or protection of the environment.
"Eligible investments for financing under the facility are capital asset acquisition and permanent working capital requirements of small and medium enterprises (SMEs), large private enterprises, government-owned-and-controlled corporations (GOCCs), and local government units (LGUs)," David explained.
The EIB fund is part of DBP’s portfolio of funds worth P46.2 billion from current facilities funded by the Japan Bank for International Cooperation (JBIC), World Bank, Asian Development Bank (ADB), and KfW of Germany. General focus of its lending portfolio are in the sectors of large industries, maritime and allied industries, SMEs, environment, the power sector, schools, and housing.
"We have the programs, we have the funding, we’re now looking for major proponents who are willing to invest, and we are ready to support them," David emphasized.
He added that a $10-million loan with the Swedish International Development Cooperation Agency is in the pipeline, while a third facility amounting to euro 7 million from the KfW is set to be signed in December.
In the drawing board is the P14-billion lending facility for the Industry Support Loan Program or JBIC 6. This is a commercial loan facility for manufacturing, telecommunications, information technology, hospitals, and schools.
Under the 27th Yen Loan Package, the DBP can tap a P16-billion fund for the Infrastructure and Logistics Assistance Facility targeted at infrastructure projects such as roads, power, the grains highway, and the cold chain.
The EIB, one of the European Union’s financing institutions providing long-term assistance, has been providing loans to its partner countries worldwide. With its flexible financing scheme, the EIB-DBP Global Facility is expected to assist a wider range of projects that will contribute significantly to the development of socio-economic infrastructures in the country. – Ted Torres