Cleaner Public Transport Financing Program

Program Title: Cleaner Public Transport Financing Program Program Objectives: * To support the objective of Republic Act 8749 (Clean Air Act) by providing financial assistance to the public transport sector to comply with the government requirements in the implementation of the R.A. * To help uplift the health condition of the workers in the public transport sector, commuters and other residences of the metropolitan areas. * To help the national government in cleaning the environment and save the resources that is being spent to arrest health caused by pollution. Eligible Borrowers: * SEC Registered financing company with at least 2 years profitable operations * Financial Institutions: o Banks-thrift banks, rural banks, microfinance banks, cooperative banks o Non-banks-NGOs, Cooperatives, Transport Federations and Associations with at least 2 years lending and profitable operations Loan Purpose: * DBP to Borrower-Conduit - for re-lending to Transport Operators (jeepneys/tricycles) * Borrower-Conduit to Sub-Borrower: o Acquisition of brand new vehicle (at least EURO 2 compliant) o Conversion of 2-stroke to 4-stroke engine of tricycles o Retrofitting of Engine o Diesel Particulate Trap for buses and jeepneys o Installation of catalytic converter o Use of alternative fuels (CNG, LPG, bio-fuels) Types of Facility: * DBP to Borrower-Conduit - Clean Revolving Credit Line (CRCL) * Borrower-Conduit to Sub-Borrower - Clean Revolving Credit Line (CRCL) Terms/Requirements: Loan Amount: * DBP to Borrower-Conduit – based on the amount established and proposed by the borrower-conduit * Borrower-Conduit to Sub-Borrower – up to 90% of the total project cost Interest Rates: * DBP to Borrower-Conduit – 8% per annum, fixed over life of loan * Borrower-Conduit to Sub-Borrower – not more than 2% per month Repayment: * DBP to Borrower-Conduit – Maximum of five (5) years, inclusive of maximum three (3) months grace period * Borrower-Conduit to Sub-Borrower – Maximum of five (5) years, inclusive of maximum three (3) months grace period Equity: * DBP to Borrower-Conduit – none * Borrower-Conduit to Sub-Borrower – Minimum of 10% of total project cost Collateral: * DBP to Borrower-Conduit – loans should be secured by any or a combination of the following: o Assignment of Real Estate Mortgage and/or Chattel Mortgage of sub-borrowers o SBGFC, Quedancor, and/or other government securities o Hold-out on deposits o Other types of collaterals/securities acceptable to the Bank * Borrower-Conduit to Sub-Borrower – the sub-loan shall be secured by any or a combination of the following: o Real Estate Mortgage o Chattel Mortgage o Government guarantees o Hold-out on deposit Basic Requirements: * Letter of Intent * Loan/project proposal/feasibility study * Board Resolution authorizing the borrowing and designating authorized signatories for the loan * Certificate of Registration/By-Laws and Articles of Incorporation/ Cooperation (or any equivalent documents) * Customer Information Report (DBP Form) * Confidential Information Sheet (DBP Form) * Audited Financial Statements (last 3 years), if applicable * Income Tax Returns (last 3 years), if applicable * Other documents that may be necessary in the loan evaluation Other Conditions: * DBP shall be the borrower’s official and principal depository bank * The average daily balance of the borrower’s deposit account shall not be less than 5% of the outstanding balance * Payment of amortization shall be through automatic debit of the borrower-conduit’s deposit account with DBP Contact: DEVELOPMENT BANK OF THE PHILIPPINES (DBP) Head Office: Sen. Gil J. Puyat Ave. cor. Makati Avenue, Makati City

Source: Business Diary Philippines