State-owned Development Bank of the Philippines has signed an agreement with the Department of Human Settlements and Urban Development for the crafting of a financing scheme that would provide affordable and decent homes for informal settlers, a top official said.

DBP President and Chief Executive Officer Emmanuel G. Herbosa said the Bank will provide the necessary financial and technical assistance to the state housing agency to help address the country's mass housing requirements through the construction of one million units annually until 2028.

"DBP is honored to take part in the DHSUD's thrust for the housing sector by tackling its two main challenges — affordability and access to funds for housing projects," Herbosa said.

DBP is the sixth largest bank in the country in terms of assets and provides credit support to four strategic sectors of the economy – infrastructure and logistics; micro, small, and medium enterprises; environment; social services and community development.

DHSUD is the primary national government entity responsible for the management of housing, human settlement, and urban development in the country. The agency is spearheading the National Government's flagship initiative, "Pambansang Pabahay Para Sa Pilipino: Zero ISF Program for 2028," which aims to build six million housing units in six years.

Under the Memorandum of Understanding between the two agencies, DHSUD will identify qualified real estate developers and contractors that will develop the project sites and assist in the preparation of project funding requirements. DBP will formulate a loan program focused on providing developmental loans for DHSUD's housing projects.

Herbosa said the Bank's support to DHSUD is in line with DBP's efforts to broaden support to social services and community development such as housing that has a proven multiplier effect in alleviating poverty.

He said that as of end June 2022, DBP's outstanding loans for social infrastructure and community development projects totaled P98.49 billion, which represents 20 percent of its total loan portfolio.

"As the country's premiere infrastructure bank, DBP remains committed to fulfill its mandate of influencing and accelerating sustainable economic growth, through the provision of resources, may it be financial or technical, for the continued well-being of ordinary Filipinos," Herbosa said.