Premier development financial institution in the Philippines

One of two major policy banks

100% government-owned

Authorized capital stock of US$19.29-M

No government subsidy

Remits at least 50% of net income to government

Development Bank of the Philippines

Supports the development of the Philippine economy, via the provision of medium to long-term credit

On-lend to participating financial institutions using ODA funds from multilateral and bilateral agencies

Undertakes investment banking, trust services, treasury operations

Raise funds in domestic and international markets In 2011, issued US$300-M unsecured notes,

raised Tier 2 Capital of US$132.26-M in domestic market

Development Bank of the Philippines

Source: Bangko Sentral ng Pilipinas Public Statement of Condition as of December 2011

10% BSP Minimum

Top RankedPhilippine Bank

Source: Bangko Sentral ng Pilipinas Public Statement of Condition as of 30 September 2011

DBP Market Share: 5%DBP Market Share: 5%

Source: Bangko Sentral ng Pilipinas Public Statement of Condition as of 30 September 2011

US$94.10-MNET INCOME (2011)

Top RankedPhilippine Bank

Developmental mission focused on four strategic sectors:

Development Bank of the Philippines

Infrastructure and Logistics

Social Services

Environment

Micro, Small and Medium Enterprises

Commercial Lending

Umbrella program

Master plan for developmental initiatives for the transport and logistics sector

Aligned with the Philippine Development Plan 2011-2016 for infrastructure investments, prioritizing the creation of integrated and multimodal national transport and logistics system

Connecting Rural and Urban Intermodal Systems Efficiently (CRUISE) program

Promote rural-urban integration and physical connectivity

Support national plan to increase investments in transport infrastructure

Promote decentralization and reduce urban congestion Accelerate economic growth particularly in high potential

growth sectors of agriculture, industry services, especially tourism

Leverage limited public resources for infrastructure through Public-Private Partnerships

CRUISE Objectives

Road Transport – upgrading/paving of road network with emphasis on local roads to and from farm areas, tourism sites, economic zones, seaports, airports

Air Transport – investments in airport terminals, runways, communication and navigational facilities and equipment

Rail Transport

Light Rail – Acquisition/ upgrading of rolling stocks to address undercapacity

CRUISE Lending Focus

Heavy Rail – Manufacture of rolling stock for cargo and perishables for use in rail service along existing alignments

Water Transport – Upgrading of domestic fleet and upgrading / rehabilitation of seaport terminals, and investments in cargo handling equipment

Urban Transport – Integrated Transport Terminals (bus, jeepneys, taxis, LRT)

Focus areas forlending under CRUISE

DBP is committed to the Philippine government’s infrastructure development -- PPP program, or Public-Private Partnership program

Major role in the syndication of loans and the raising of funds in the capital market

Identify, develop and implement commercially-viable infrastructure projects, by providing transaction/ financial advisory via specialized investment banking and risk evaluation services

Water treatment New and renewable energy Alternative fuel Rural power projects Solid and hazardous waste management Pollution control

DBP Environment Program(Green Financing)

Non-credit partnership program with communities

Identify sites for reforestation, where high-value fruit and forest trees can be planted to save mountains from erosion and reduce effects of carbon emission

38 forest projects already, covering almost 6,500 hectares

DBP Forest

Credit program for expansion, harvesting, maintenance, protection of tree plantations in private and public land covering both lowland and forest areas

Reduce susceptibility of communities to natural disasters

Expected to boost Philippine wood-based industries and assist communities improve their socio-economic conditions

Tree Plantation Financing Program

In 2009, Manila Water Company, Inc. (MWCI) and Tourism Infrastructure and Enterprise Zone Authority (TIEZA) entered into joint venture to form Boracay Island Water Company, Inc. (BIWC) to address water supply and sanitation issues

DBP on lent to privately-owned Security Bank Corp. to support additional capital expenditures for environmental projects in Boracay

PPP for Boracay

Partnership initiative has given rise to a new lending set-up on investment modality with a special co-financing structure

Majority of funds sourced from ODA-funded Philippine Water Revolving Fund

DBP and SBC share on a 50-50 basis in the debt component of the US$38.16-M investment

PPP for Boracay

BWIC has also infused an equity portion amounting to US$5.62-M

Targets to serve the current 4,727 service connections and meet increasing water demand

Pipelines to be extended to allow expansion of service coverage area and provision of potable water to 1,422 additional service connections from 2010 to 2018

PPP for Boracay

Pump stations to be upgraded, doubling their capacity

Installation of additional generator sets to complement power requirements to ensure 24/7 operations

Improvement of sanitation and sewerage conditions, including multi-media filtration system, portable treatment plants, sludge dewatering facility

PPP for Boracay

Infrastructure is a key multiplier on national competitiveness.

The Philippine government has pledged to boost infrastructure spending

Key to sustaining infrastructure spending is tapping private sector expertise and resources

Access to reasonable and reliable financing is essential

Financing infrastructure development provides good growth opportunities.

Financing infrastructure projects contributes greatly to national development and country competitiveness.

DBP will continue to chart its role according to the country’s needs

DBP to focus on building the infrastructures for development, where there is plenty of room for developmental interventions, where DBP can do a lot more.

DBP’s commitments is to be a catalyst in promoting others’ participation in development.

Our role is to work with as many project proponents as we can.

DBP will continue to work with, and through others, to attain development objectives.

Thank you.