MANILA, Philippines - Government-run Development Bank of the Philippines (DBP) has signed an agreement with the Philippine Stock Exchange Inc. (PSE) to spur the listing of small and medium enterprises (SMEs) in the local bourse.
Under the agreement, DBP and PSE will come up with a framework for cooperation and coordination in the area of capital market development, particularly in raising capital market awareness among SMEs.
DBP and PSE will jointly conduct listing seminars for DBP-assisted companies to encourage more SMEs to go into the stock market.
The PSE may also refer to DBP companies that are in need of its financing programs, while DBP will also refer client-firms that have expressed their intention to list on the stock exchange.
Both parties may also conduct discussions to provide a forum for DBP employees in building investor awareness and any other issues that may affect the capital market.
DBP said its vision is to be able to capitalize funding for SMEs in the capital market in order to address the chronic lack of long-term credit.
DBP said it has consistently explored ways of extending much-needed support to the SME by combining credit and non-credit assistance.
DBP also enhanced its SME program under an umbrella initiative known as the Sustainable Entrepreneurship Enhancement and Development (SEED) program.
To support the inclusive growth strategy of the government, DBP has likewise set aside some P1.1 billion for relending to micro, small and medium enterprises (MSMEs).
The loan will go to three participating financial institutions under the bank’s wholesale lending program as part of efforts to boost economic growth by supporting MSMEs.