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DBP approves P300-M revolving credit line for City Savings Bank

04/06/2008

The Development Bank of the Philippines (DBP), under its wholesale facility, has approved a P300-million revolving credit line for City Savings Bank (CSB). The loan will help support the funding requirement of CSB for new loans to public school teachers under the automatic payroll de-duction scheme of the Department of Education (DepEd).

An Aboitiz company, City Savings Bank has catered to the financial needs of public school teachers for more than 40 years now. It has 17 branches and extension offices located all over the Visayas and Mindanao with a total workforce of 272 serving more than 60,000 borrowers and 69,000 depositors.

CSB decided to obtain funding assistance from DBP to complement its expansion plans that involve the putting up of new offices designed to meet the needs of its niche market in areas not served by lending institutions accredited by the DepEd. CSB has pursued the wholesale facility of DBP because it is consistent with its core business of granting salary loans to public school teachers, a competence that CSB began to develop from the time it was founded in 1965.

Through the wholesale credit facility approved for CSB, the DBP aims to similarly provide support to numerous public school teachers who try to augment their income by engaging in various livelihood activities. It also hopes to complement efforts by DepEd to make credit accessible to teachers at more affordable rates. In partnership with CSB, the DBP makes its assistance more available in the countryside.

The loan signing ceremony was held recently at the Aboitiz Corporate Center in Cebu City.

CSB/CEO Mikel Aboitiz, (3rd from left) and DBP SVP/Head of Vismin Office for Financial Institutions Ma. Teresa Macasaet-Jesudason (4th from the left) sign the loan documents.

Witnesses to the signing are (from left) Aboitiz Equity Ventures (AEV) FVP/Treasurer Gabriel Mañalac, AEV/CFO Stephen Paradies, DBP VP and Head of DBP’s Vismin Office for Financial Institutions Myrna Kho, and DBP Account Officer Imelda Adolfo (standing).