Banks offer corporate loans to help ailing sectors recover

CEBU, Philippines — Bankers are reiterating commitment to help ailing industries affected by the pandemic, by opening their doors for corporate loans.

Development Bank of the Philippines (DBP) president and chief executive officer Emmanuel Herbosa said the bank is looking at supporting the private sector in assisting strategic industries that play a pivotal role in the Philippines economic recovery from the pandemic.

Herbosa added that as the country’s infrastructure bank, DBP remains at the forefront of supporting especially the transport and logistics sector, which ensures essential movement of people, goods and services across our archipelago.

Likewise, Land Bank of the Philippines (LBP) president and CEO Cecilia Borromeo expressed strong commitment to support companies on their recovery endeavors, citing its assistance given to aviation firm Cebu Pacific.

“Landbank fully supports the recovery of the aviation industry in the new normal. This forms part of our continuing commitment to respond to the financial requirements of key sectors and contribute to revitalizing our local economy,” said Borromeo.

BPI president and CEO Cezar Consing expressed similar tone, saying banks are now prepared to assist leading and strong institutions heavily affected by the pandemic.

Recently, Cebu Pacific signed a P16 billion ten-year term loan facility with a syndicate of domestic banks.

Coinciding with the Philippine COVID vaccination program launched earlier this Month, which will be a key factor in restoring passenger confidence to return to flying, DBP,LBP joined hands with Asia United Bank Corporation (“AUB”), BPI, Metropolitan Bank & Trust Company (“MBTC”) and Union Bank of the Philippines (“UBP”) as lenders in the facility.

CEB will use the proceeds of the loan to fund its capital expenditures and other general corporate purposes. The loan will also provide a cushion against unexpected working capital requirements that may stem from fuel price and foreign exchange rate volatility.