Slide 1

Development Financing: The Development Bank of the Philippines Experience BENEL D. LAGUA Executive Vice President & Chief Development Officer Development Bank of the Philippines

Slide 2

Outline of Presentation 1.The Development Bank of the Philippines 2. 2.Priority Development Thrusts Infrastructure and Logistics Environment Social Services & Community Development Micro, Small and Medium Enterprises 3. Corporate Social Responsibility 4. Corporate Scorecard 5. A Commitment The DBP Credo 6. Closing 2

Slide 3

Premier developmental financial institution 100% government owned, 92 branches Ranked #6 in the Philippines; Assets = P 433B Remits at least 50% of net income to government annually To influence and accelerate sustainable economic growth To service the financing needs of enterprises, infrastructure efficiency, livelihood and job creation. Mandate: A Development Institution Focused on the Well-being of the Filipino 3

Slide 4

DBP is a conduit for: Industrial Guarantee and Loans Fund (IGLF)Industrial Guarantee and Loans Fund (IGLF) 4 IGLFODA Official Development Assistance (ODA) FundsOfficial Development Assistance (ODA) Funds JICA KfW World Bank ADB

Slide 5

5 Development By Partnership Flexible grace period Competitive rates based on credit rating Short-Term and Long-Term Financing Options to fix rate Contributes to the National Treasury

Slide 6

6 DBPs Drive towards Inclusive Lending LGU + Water + Power + Health + Education Corporate Banking Middle Market MSME

Slide 7

Logistics & Tourism Transport Utilities Infrastructure and Logistics Environment Initiatives Social Services & Community Devt Micro, Small and Medium Enterprises Agri- Agra SEED DBPs Priority Development Thrusts

Slide 8

Logistics & Tourism Transport Utilities Infrastructure and Logistics Environment Initiatives Social Services & Community Devt Micro, Small and Medium Enterprises DBPs Priority Development Thrusts

Slide 9

9 PHILIPPINE DEVELOPMENT PLAN 2011-2016 DBP PRIORITY THRUSTS: INFRASTRUCTURE & LOGISTICS Transport, Logistics, Tourism CRUISE CONNECTING PEOPLE CONNECTING MARKETS CONNECTING SUPPLY CHAINS CONNECTING COMMUNITIES CONNECTING INFORMATION Through Transport, Logistics, and ICT Systems LIDPEDP DSMP SGF EISCP SGF ISSEP SGF IGLF BANK FUNDS PROJECT FINANCING TECHNICAL ASSISTANCE & ADVISORY SERVICES PROMOTIONS AND ADVOCACY Strategic Framework

Slide 10

CRUISE Program Connecting Rural Urban Intermodal Systems Efficiently DBPs platform towards a vision of SEAMLESS CONNECTIVITY DBP supports the transport and logistics sector as a provider of medium and long-term funds due to the sectors critical role in sustaining economic growth Niche markets for DBP include PPP projects at the national and local levels as well as private-sponsored projects in shipping, logistics, freight forwarding and tourism

Slide 11

Focus Areas of CRUISE Transportation Road, Water, Air and Rail Transport Infrastructure & Services Urban Transport and Non-Motorized Transport Logistics Warehousing Cargo Consolidation Tourism Tourism Accommodation Facilities

Slide 12

Infrastructure and Logistics Environment Initiatives Social Services & Community Devt Micro, Small and Medium Enterprises DBPs Development Thrusts

Slide 13

DBP Environment Initiatives Committed to environmental protection and sustainable development One of the first PH bank to integrate environmental considerations in all aspects of its operations Provides financing as well as technical assistance to projects that are environmentally sound Plays an active role in encouraging clients and PFIs to include environmental considerations in their businesses and thrusts

Slide 14

14 DBP is the 1 st Philippine bank to be ISO 14001 certified DBP Environment Initiatives DBP is a member of the United Nations Environment Program Finance Initiative

Slide 15

Green Financing Program Initiatives Sustainable Solid Waste Management Program Clean Alternative Transport Fuel Financing Program Climate Change and Carbon Financing Facility Water Supply and Sanitation Services New and Renewable Energy Projects Tree Plantation Financing Program Philippine Water Revolving Fund Regional Infrastructure for Growth Project

Slide 16

Green Financing Program Initiatives LUZON 148.12 MW (On-grid- 144.94 MW, Off-grid 3.18 MW) VISAYAS 10.50 MW (On-grid 10.50 MW) MINDANAO 6.47 MW (On-grid 5.97 MW; Off-grid 0.50 MW) Contribution in Renewable Energy Development

Slide 17

17 BeneficiaryNegros Island KWH Generated 3,251,576 KWH CO2 avoided 1,476 Tons Fuel oil equivalent 6,136 barrels FOREX Savings US$ 0.662 Million Green Financing Program Initiatives 8 MW Bio-ethanol Cogeneration Plant San Carlos, Negros Occidental

Slide 18

Infrastructure and Logistics Environment Initiatives Social Services & Community Devt Micro, Small and Medium Enterprises DBPs Development Thrusts

Slide 19

Social Services and Community Development Providing for the Filipinos Basic Needs Lends to projects for health care, education, housing and community development Helps provide access to shelter for the poor while supporting the development of infrastructure and community facilities in cities and municipalities

Slide 20

Human Development Initiatives Education: Higher Education Loan Program for Students Financing for Public Basic Education Financing for Higher Education Shelter and Health Care: Sustainable Shelter Development Program Financing for Public Safety Initiatives Sustainable Health Care Investment Program

Slide 21

DBP-Financed Hospital Projects

Slide 22

Infrastructure and Logistics Environment Initiatives Social Services & Community Devt Micro, Small and Medium Enterprises Agri- Agra SEED DBPs Development Thrusts

Slide 23

MSMEs Contribution to the Economy Source: 2012 List of Establishments, NSO 0.4% Large Micro, Small and Medium 64.3% 35.7% No. of Establishments 99.6 % 35% 65% Value Added Jobs Generated MSME Large 23

Slide 24

SMILE Department Wholesale Lending Dept. SME GROUP Integration of DBPs MSME Functions for a More Cohesive, Effective and Efficient Service Delivery to MSMEs Creation of responsive & MSME Friendly credit policies Creation of Automated Credit Scoring System, sponsored by Innovations for Poverty Alleviation (IPA), USA Setting up of Regional SME Centers Expansion of DBP SME Unit into SMILE Department 24

Slide 25

LGUs and other Government Agencies DTI Strengthening Collaboration with SME Development Partners DBP Private Sector NERBAC Participation in SME Road Shows Participation in Business Forums Financial Literacy for SME Clients Membership in SME Organizations SME 25

Slide 26

CSR Statement As a catalyst for a progressive and poverty-free Philippines, DBP is committed to upholding its corporate citizenship program through initiatives that promote the welfare of the Filipino people, particularly the underprivileged.

Slide 27

CSR Programs It is NOT a loan project. It is an assistance/ partnership project.

Slide 28

DBP Forest Program A non-credit program that aims to stop denudation and restore the countrys forest cover through organized collaboration with LGUs, NGOs, SUCs, POs and other qualified forest partners. It was conceptualized in December 2004 as an offshoot of the Infanta, Quezon tragedy There are now 43 Forest Projects nationwide since its launching in 2005. Classification of DBP Forest: 1. Upland Forest 27 2. Mangrove Forest 16

Slide 29

Cagayan State University PLGU Cagayan PLGU Aurora PLGU Nueva Vizcaya Bambang Fruit & Vegetable Growers MPC BFARMAI MSWMC TCA PLGU Bulacan MASAGKA KIMAMA BAMABA PLGU Occ. Mindoro PLGU Marinduque WVSU PLGU Guimaras PCSD PSU CFDC LGU Gamay UKAFA BALIKATAN PLGU Sarangani PLGU Sarangani (Expansion) LEGEND UPLAND COASTAL DBP Forest Location Map As of Sept. 30, 2014 PO - 16 LGU - 17 SUC - 8 OGA - 2 ---- 43 MTCCCI VSU/LGU Palompon UP Los Baos LGU Tagum City 7,121 Hectares 29 Upland - 6,370 17 Coastal - 751 DBP Funding Assistance P128.35 Million SMMV SAMMAKA TIBMAD IMBO PMSOA LGU Ubay VSU/LGU Isabel DOSCST UP Los Baos Expansion LGU Banaue DEBESMSCAT FORSIHAMA LGU Asuncion LGU Cawayan Dept. of National Defense

Slide 30

DBP Endowment for Education Program The DBP Endowment for Education Program (DEEP) is a CSR project that supports the best and the brightest high school (secondary) graduates from indigent families. Through DEEP, the Bank sends poor but deserving high school students to college. Scholarship assistance covers the whole range of the students requirements, including books, cost of living, and allowances. Now a brand name and a mainstream activity firmly defining DBPs mandate as a development institution, DEEP supports a total of 2,542 scholars as of November 2013.

Slide 31

A Commitment The DBP Credo Committed to a progressive Filipino society Mission is to make the Filipino productive and competitive Work as partners with those taking the lead in development Commitment to service is before personal ambition Trademarks are: Integrity and Competence, Teamwork and Professionalism

Slide 32

32

Slide 33

Closing He who survives is not the strongest nor most intelligent.... But he who is more responsive to change and is flexible to adopt to situations Charles Darwin Development Bank of the Philippines Development Bank of the Philippines

Slide 34

Thank you. bdlagua@dbp.ph Mabuhay! 34