DBP President Reynaldo G. David in press conference traced the good performance of the institution to its "continued resilience and strength amidst volatile economic scenario."

"We remained focused on what we have to do. We are keen on generating scale on all our activities. We have to make sure we have adequate scale to remain strategic, relevant, and true to our charter. Our developmental side is definitely set to kick into higher gear this year," David explained.

This as David announced the temporary postponement of its hybrid tier 1 issue for next July, at the earliest, due to volatile interest rate offshore.

"We will do it in the next 30 days to 45 days," David said, expressing confidence that the external interest rates will calm down with most foreign market analysts projecting that the US Federal Reserves will no longer conduct monetary tightening.

DBP, based on its original schedule, would have issued last May 21 its $ 130-million worth of hybrid tier 1 capital notes issue, proceeds of which will increase its capital and thereby its adequacy ratio to around 30 percent from the current 22 percent.

"Market, then, was very volatile. Interest rates went haywire," David justified, adding that should the DBP will have to "live with a high" borrowing cost should it pushed through with the issue in May.

A roadshow presentation as planned will be conducted in three cities, Singapore as its first foray to be followed by a roadshow in Hongkong and finally, in London.

The hybrid tier 1 capital notes will have a "perpetual" tenor "but callable in 10, which means an infinite maturity with DBP having the option to redeem or call on the notes 10 years after the issue date.

However, it was noted that DBP’s capital notes will no longer fully underwritten by its issue managers, among them, Hongkong-based Barclays Asia Capital Ltd. as was disclosed, at the onset when the institution was planning the float.

"It will be done by bookbuilding," DBP Treasury consultant Jaime Panganiban.

He quickly explained that the dearth of issues from emerging markets such as the Philippines, including the rebound in the appetite for sovereign floats, will "be positive signs" for the DBP issue to be fully subscribed.

But, David stressed that an overwhelming subscription will not allow DBP to accept beyond 0 million. "There is no greenshoe option," he pointed out.

Greenshoe refers to the allowance or authority of the issue to increase its volume offering should market reception becomes overwhelming.

David said the sustained good financial performance of the bank will be one of its selling points during the roadshow presentation.