DBP Firms Up P5.7B Loan With Compostela Steel Inc
Photo Credit: DBP and Compostela Steel Inc. Official Websites
State-run Development Bank of the Philippines, the eighth-largest lender in terms of assets, has signed a P5.7-billion long-term loan agreement with Compostela Steel Inc. for the construction of its biggest steel-making facility located in Compostela, Cebu.
DBP president and chief executive Emmanuel Herbosa said in a statement Thursday the bank’s credit support to CSI, a subsidiary of Steel Asia Manufacturing Corp., the country’s biggest steel manufacturer, would be a boon to the local construction industry and help boost local steel production.
“As the premier infrastructure bank of the country, financing projects that enable the local construction industry to be self-reliant in steel is a developmental priority, as it further improves the country’s infrastructure landscape,” Herbosa said.
DBP provides credit support to four strategic sectors of the economy – infrastructure and logistics; micro, small and medium enterprises; environment; social services and community development.
Under the agreement, the loan proceeds will be used to partially finance the Compostela Works Rolling Mill, with parent company, Steel Asia, investing the balance of the required total capital amounting to P8.3-billion. The mill is the seventh of SteelAsia in the country, in addition to its other facilities in Batangas, Carcar, Davao, Cagayan de Oro, and Bulacan.
Herbosa said the mill, which started construction in 2019, is expected to meet the growing demands of the Visayas region, where there is limited supply of locally-manufactured products, while generating up to 3,000 direct and indirect jobs.
DBP president and chief executive Emmanuel Herbosa said in a statement Thursday the bank’s credit support to CSI, a subsidiary of Steel Asia Manufacturing Corp., the country’s biggest steel manufacturer, would be a boon to the local construction industry and help boost local steel production.
“As the premier infrastructure bank of the country, financing projects that enable the local construction industry to be self-reliant in steel is a developmental priority, as it further improves the country’s infrastructure landscape,” Herbosa said.
DBP provides credit support to four strategic sectors of the economy – infrastructure and logistics; micro, small and medium enterprises; environment; social services and community development.
Under the agreement, the loan proceeds will be used to partially finance the Compostela Works Rolling Mill, with parent company, Steel Asia, investing the balance of the required total capital amounting to P8.3-billion. The mill is the seventh of SteelAsia in the country, in addition to its other facilities in Batangas, Carcar, Davao, Cagayan de Oro, and Bulacan.
Herbosa said the mill, which started construction in 2019, is expected to meet the growing demands of the Visayas region, where there is limited supply of locally-manufactured products, while generating up to 3,000 direct and indirect jobs.
