DBP allots P5B for agri lending

MANILA, Philippines - State-owned Development Bank of the Philippines (DBP) has allocated P5 billion for its loan program to the agribusiness sector, a top bank official said.

DBP president and chief executive officer Francisco F. Del Rosario Jr. said this program seeks to further promote agribusinesses in the countryside by providing lending assistance to the agriculture, forestry and fishery sectors.

Dubbed as the Agribusiness Development Program (ADP), Del Rosario said they expect to boost funding support to agri-agra projects in compliance with the Agri-Agra Reform Credit Act of 2009.  

 “We will allocate an initial amount of P5 billion to provide agri-based entrepreneurs access to loans in the transformation of farmlands and idle lands including DAR’s distributed agri-lands into agribusiness enterprises,” Del Rosario said. 

He said the program also seeks to develop high value commercial crops and promote organic agriculture. 

The ADP is in support of the National Convergence Initiative Program of the departments of Agriculture, Agrarian Reform, and Environment and Natural Resources.

Del Rosario said the ADP has pipeline projects amounting to P2.6 billion. 

Eligible for funding, he said, are all agribusiness projects including but not limited to priority crops under the DBP High Value Commercial Crops and Organic Agriculture Programs, from production, post-harvest, agri-processing to market or the whole value chain. 

He said other eligible for financing are poultry and livestock, investments in bio-fuel feedstock projects, and production of organic products or the whole value chain.

The bank official also said the facility is available under wholesale lending and retail lending. 

Eligible borrowers under wholesale lending are banks, microfinance institutions, non-government organizations, cooperatives, SEC-registered financing companies, farmers and fisherfolk associations and other types of associations duly registered with corresponding government agencies. 

“All types of business entities engaged in agribusiness projects and registered with corresponding agencies are eligible for financing under retail lending,” he added.