DBP opens CTS financing window for realtors

MANILA, Philippines — Real estate developers may now tap a new lending facility established by the Development Bank of the Philippines (DBP) for their housing projects, a top official said.

In a statement, DBP president and chief executive officer Emmanuel Herbosa said the bank launched its contract to sell financing facility for real estate developers, or the CTS program, which aims to assist housing developers in expanding their housing.

Herbosa said this is also meant to stimulate the continuous development of housing facilities by key shelter agencies (KSAs) to address the backlog in the housing industry.

“The CTS program boosts housing developers’ capacity to undertake more housing projects, especially in underserved areas and for lower-income groups,” Herbosa said.

He said prospective borrowers under the CTS program are required to have at least a three-year track record and possess requisite government licenses.

He said eligible developers must have no derogatory findings or any adverse records or credit findings with housing regulators and maintain satisfactory credit experience with trade suppliers and contractors. 

“DBP may extend financing assistance of up to 80 percent of the total contract price of the CTS outstanding balance. The interest on this program is based on prevailing market or interest rates,” Herbosa said.

Herbosa said the CTS program is an integral component of the national government’s thrust to bridge the housing gap and fuel the growth momentum of the housing industry.

Citing latest data, the DBP said the national government has targeted to produce  over 1.5 million units by 2022, which is below the estimated backlog of two million units. Industry observers expect the housing demand to grow to up to six million units by end-2021.

DBP is the eight largest bank in the country with assets totaling P635.6 billion as of the end of March.

It provides financing support to key sectors, such as infrastructure and logistics, small and medium enterprises (SMEs), social services and community development, and the environment.

The bank expanded its development lending activities in the first quarter of the year, as shown by its gross loan portfolio, which grew  7.71 percent to P323.18 billion.

As a result of strong earnings from these lending activities, the DBP booked a net income of P1.57 billion, up 44 percent year-on-year.