DBP extends P1-billion credit line to Philphos

MANILA, Philippines - The Development Bank of the Philippines (DBP) opened a P1-billion credit line facility with the Philippine Phosphate Fertilizer Corp. (Philphos) to boost the fertilizer’s production for both its domestic and export markets.

Philphos, the leading producer of phosphatic fertilizer in the country, will utilize the facility to finance the importation of raw materials required for production.

It will also finance the company’s requirements for pre-shipment working capital in order to support the increasing demand for fertilizers in the local and international markets.

With the P1-billion credit facility, the company’s production is expected to be boosted by another 15 percent annually, and help ensure the adequate supply of fertilizer products in the market, which is deemed critical to the agricultural sector. This will also help in promoting supply stability and sufficiency of rice and other agricultural products in the country.

Philphos operates the largest processing fertilizer plant in the country.

The plant covers an area of 180 hectares and sits within the 435-hectage Leyte Industrial Development Estate in Isabela, Leyte. It also operates the largest processing capacity with approximately 1.17 metric tons of fertilizer annually.

It produces fertilizer products such as nitrogen, phosphorous and potassium (NPK). It is the first company to develop several fertilizer grades customized for rice, corn, sugarcane and various fruits and vegetables. The firm has also ventured into the processing of products for livestock nutrition.

Meanwhile, the government financial institution has reported a loan portfolio of P143.16 billion as of the first semester of 2010.

Total assets stood at P283.43 billion in the first six months of the year with deposits reaching P119.27 billion.

Net income reached P2.83 billion, or 34 percent higher than the P2.11 billion realized in the same period last year.

Net worth improved by 2.53 percent to P39.6 billion while capital adequacy ratio (CAR) reached 23.12 percent.