THE Development Bank of the Philippines (DBP) said on Thursday that it signed an aquaculture financing agreement with Charoen Pokphand Foods Philippines Corp. (CP Foods).
The DBP’s Aquaculture Value Chain Financing Program will support small and micro enterprises and cooperatives with loans of between P5 million and P15 million to finance 90% of the total project cost, the DBP said in a statement.
For medium to large enterprises, the deal will fund a minimum of P15 million or up to 70% of the total project cost, the state-run lender added.
“This new tie-up further strengthens our longstanding partnership with CP Foods and cements our continuing commitment to help ensure food security and productivity in the country,” DBP President and Chief Executive Officer Michael O. de Jesus said.
CP Foods is a major producer of animal feed, with a network of customers who may require the DBP’s funding for working capital, fixed assets, support facilities, pond development or improvement, and post-harvest facilities.
“This partnership is in support of the Department of Agriculture’s (DA) commitment to intensify the fishery sector by increasing the shrimp production to 276,320 tons from 2023-2027,” Mr. De Jesus said.
The DBP said projects planned under the agreement are valued at P7 billion this year.
“We are confident that CP Foods’ decades-long aquaculture expertise will greatly contribute towards our collective goal of a more competitive and sustainable Philippine aquaculture,” Mr. De Jesus said.
“CP Foods is a subsidiary of Thailand’s Charoen Pokphand Foods Public Co. Ltd. (CPFPC) which operates vertically integrated agro-industrial and food businesses, harnessing its investments and partnerships in 17 countries worldwide,” the DBP said.
The DBP is the country’s eighth largest bank by terms of assets and serves borrowers involved in infrastructure and logistics; the environment; social services and community development; as well as micro, small and medium enterprises.
It reported a net profit of P5.6 billion in 2022, up 50%, on the back of improved interest income and loan volumes. — Aaron Michael C. Sy
