| MANILA, Philippines – The Development Bank of the Philippines (DBP) will issue up to $300 million of 10-year US dollar senior notes.The Bangko Sentral ng Pilipinas (BSP) on Friday approved in principle DBP’s proposed bond issue, sources said Friday.DBP will contribute P50 billion to the P200-billion public private partnership (PPP) initiatives of the Aquino administration. The bank will initially be involved in the financing of land acquisition for road right-of-way and other pre-development costs.
Other government financial institutions like Land Bank of the Philippines, the Government Service Insurance System and the Social Security System will supply the rest of financing for the P200-billion infrastructure fund.DBP in a statement earlier said, the four GFIs will also support the Philippine Infrastructure Development Fund which aims to accelerate infrastructure development in the country. “The PIDF will also promote public-private partnerships in financing qualified infrastructure projects, and provide long-term fund sources to project partners," the bank said.
DBP recently exercised its call option on the P2.35 billion unsecured subordinated debt lower tier2 capital last January 18.
(Source: Philstar.com, Business Section, by Lee Chipongian, 2/12/2011)