The Development Bank of the Philippines, or DBP, is studying measures to amend its 26-year-old charter and expand its capital and lending mechanisms.

In a statement released Thursday, DBP said it plans to increase its authorized capital stock from P35 billion to P300 billion.

The infrastructure-centric lender said this will enable it to extend more funds to priority sectors and diversify its products to support long-term national economic growth.

Boost financial position

“These amendments are needed to boost our financial position and make the bank responsive to the evolving needs of our clients,” DBP president Michael de Jesus said.

The DBP’s charter was last amended in 1998, enabling it to increase its P5-billion authorized capital stock then to the existing level.

DBP said it will also be discussing plans for a possible initial public offering or IPO to expand its funding sources.

This idea was mentioned by Finance secretary Ralph Recto in his speech to the Philippine Stock Exchange last month.

More countryside development 

“We are working hand-in-hand with all stakeholders especially the DoF in ensuring that DBP would be able to finance more developmental projects especially in the countryside,” De Jesus said.  

“DBP is also committed to work with the National Government and the DoF in the wake of proposals to publicly list state-owned banks,” he added.