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Program Title: High Value Commercial Crops Financing Program

Program Objectives:
* To provide credit for high value commercial crops production projects in order to accelerate the growth and development of Philippine Agri-Business as part of the National Government’s thrust.
* To develop high value commercial crops for exports to significantly increase the foreign exchange earnings of the
country.
* To improve the standard of living of farmers by providing them the opportunity to increase their income.

Eligible Borrower-Conduit:
 * 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, with at least 2 years lending and profitable operations
Eligible Sub-Borrower: Individuals, partnership, corporation or cooperative duly registered with DTI/Securities and Exchange Commission or Cooperative Development Authority who own titled land or with tenurial arrangement on land suitable for planting to high-value commercial crops.

Loan Purpose:
 * DBP to Borrower-Conduit – for relending to farmers/growers for high value crops production
 * Borrower-Conduit to Sub-Borrower – sub-loan shall be utilized to cover the cost of high value crops production including but not limited to the following:

o Land preparation
o Purchase of planting materials, fertilizers and agricultural chemicals
o Labor in planting, cultivation and other maintenance operations
o Irrigation and drainage
o Acquisition of land specifically for pineapple production (exclusively for OFW proponents)
o Other purposes that contribute directly to increase productivity and maintenance of the plantation

Priority Crops for Financing:
* Fruits : banana, pineapple, mango, durian, pummelo, calamansi, pili, lanzones, papaya, mangosteen
* Vegetables : asparagus, broccoli, shallot, cabbage, celery, cauliflower, etc.
* Plantation Crops: rubber, coffee, oil palm and cacao

Other high value commercial crops, such as the following, shall be considered on a case to case basis depending on its development impact on the sector:

* Rootcrops : sweet potato, white potato, ube, etc.
* Legumes : peanut & mungbean
* Spices : Onion, garlic & ginger
* Ornamentals : Foliage & cutflowers
* Essential Oils : Lemon grass & ilang-ilang


Minimum Risk Acceptance Criteria: The borrower-conduit should have existing or proposed lending program for high value crops project following the “Big Brother” scheme and similar arrangements where farmers/growers have existing purchase or contract growing agreement with buyers.

Types of Facility:
* DBP to Borrower-Conduit – Clean Revolving Credit Line (CRCL)
* Borrower-Conduit to Sub-Borrower:
o Credit line – working capital for production
o Term Loan – to finance post harvest/facilities/processing requirement

Terms/Requirements:

Loan Amount:
* DBP to Borrower-Conduit – based on the amount established and proposed by the borrower-conduit
* Borrower-Conduit to Sub-Borrower – based on the following:
o Incremental project cost
o Viability of the project

Interest Rates:
* DBP to Borrower-Conduit – minimum of 8% per annum
* Borrower-Conduit to Sub-Borrower – not more than 18% per annum-100-
Repayment:
* DBP to Borrower-Conduit – not applicable
* Borrower-Conduit to Sub-Borrower – repayment would be based on the project cycle and cash flow but not to exceed 10 years inclusive of 3- year grace period
Equity:
* DBP to Borrower-Conduit – not applicable
* Borrower-Conduit to Sub-Borrower – No equity requirement for high crops production except for the project site

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

* 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 SBGFC, Quedancor, and/or other government guarantee
o Crop Insurance
o Other types of collateral/securities acceptable to the borrower-conduit

Collateral/s/securities of sub-borrowers shall be assigned in favor of DBP.

Basic Requirements:
The borrower shall submit loan proposal together with the following documentary requirements to Microfinance Resource Center and/or other marketing units including Financial Institutions (wholesale banking) and RMCs / Branches:
* 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 maybe 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.
* A crop production project shall be covered by crop insurance or any other equivalent instrument/coverage that will pave the way to investment recovery during calamity, to be assigned in favor of DBP/borrower –conduit.

Contact Details:

DEVELOPMENT BANK OF THE PHILIPPINES (DBP)
Head Office: Sen. Gil J. Puyat Ave. cor. Makati Avenue, Makati City

Dulce Q. Ranosa
Senior Assistant Vice President
DBP-Head Office
5th Floor, DBP Building
Makati Ave. cor. Gil J. Puyat Avenue
Ext., 1200 Makati City
Direct Line : (632) 840.5356
Trunkline : (632) 818.9511 local 2557
Fax: (632) 894.4927
E-mail: dqranosa@devbankphil.com.ph

Eduardo Z. Rivera
Acting RMC Head/Asst. Vice President
RMC-Northeastern Luzon
2nd Floor, DBP Building
Osmena, National Highway
Ilagan, 3500 Isabela
Direct Line : (6378) 624.0877; 622.2273
Fax: (6378) 622.2272/2273
E-mail: rmc-nel@devbankphil.com.ph

Perla S. Soleta
RMC Head/Sr. Asst. Vice President
RMC/Northwestern Luzon
2nd Floor, DBP Building
M. H. Del Pilar St.
2400 Dagupan City
Direct Line : (6375) 515.8937; 523.7836
Fax: (6375)
523.7835/246.0742
E-mail: rmc-nwl@devbankphil.com.ph

Ma. Teresita S. Tolentino
RMC Head/Vice President
RMC-Metro Manila
2nd Floor, DBP Building
Commonwealth Avenue
1121 Quezon City
Direct Line : (632) 920.4781; 920.4715
Fax: (632) 920.4776/920.4903
E-mail: rmc-mm@devbankphilc.com.ph

Herminio C. Catahan
RMC Head/Sr. Asst. Vice President
RMC-Central Luzon
Dona Isa Fel Building
Dolores, McArthur Highway
San Fernando City, 2000 Pampanga
Direct Line : (6345) 961.0003; 961.4782
Fax: (6345) 963.1231
E-mail: rmc-cl@devbankphilcom.ph

Rolando N. Gordovez
RMC Head/Asst. Vice President
RMC-Southern Tagalog
2nd Floor, DBP Building
Merchan St., 4301 Lucena City
Direct Line : (6342) 373.1917; 373.4404
Fax: (6342) 373.4404
E-mail: rmc-st@devbankphilcom.ph

Abelardo L. Monarquia
RMC Head/Sr. Asst. Vice President
RMC-RMC Bicol
3rd Floor, DBP Building
Quezon Avenue, 4500 Legaspi City
Direct Line : (6354) 472.4728; 472.4729
Fax: (6354) 472.4727
E-mail: amorbr@devbankphilcom.ph

Rodelio L. Labit
RMC Head/Sr. Asst. Vice President
RMC-RMC Eastern Visayas
2nd Floor, DBP Building
Corner Zamora and Paterno Sts.
Tacloban City, 6500 Leyte
Direct Line : (6353) 325.2958 to 2960
Fax: (6353) 325.2961
E-mail: rmc-ev@devbankphilcom.ph

Rosalio Dagondon
RMC Head/Vice President
RMC – Central Visayas
Mezzanine Floor, DBP Building
Osmena Blvd., 6000 Cebu City
Direct Line : (6332) 255.6310; 255.7410
Fax: (6332) 253.6951
E-mail: rmc-cv@devbankphil.com.ph

Rosalio Melanie Pama
Acting RMC Head/ Asst. Vice President
RMC – Panay
Mezzanine Floor, DBP Building
I. Dela Rama St., 5000 Iloilo City
Direct Line : (6333) 336.6432; 337.6330
Fax: (6332) 335.7567
E-mail: rmc-panay@devbankphil.com.ph

Ame Cris C. Toledo
RMC Head/Sr. Asst. Vice President
RMC – Negros
Mezzanine Floor, DBP Building
corner South Capital & Lacson Sts.
6100 Bacolod City
Direct Line : (632) 818.9511 local 2557
Fax: (632) 894.4927
E-mail: rmc-negros@devbankphil.com.ph

Edgar N. Seronay
RMC Head/Sr. Asst. Vice President
RMC-Northern Mindanao
2nd Floor, DBP Building
Corrales Avenue cor. Tirso Neri St.
9000 Cagayan de Oro City
Direct Line : (6388) 231.4266; 309.4266
Fax: (6388) 723.316
E-mail: rmc-cdo@devbankphilcom.ph

Sisinio S. Narisma
RMC Head/Sr. Asst. Vice President
RMC-Northeastern Mindanao
J. C. Aquino Ave. corner J. Rosales
Avenue, 8600 Butuan City
Direct Line : (6385) 815.6036; 341.5136
Fax: (6385) 815.1627
E-mail: amonem@devbankphilcom.ph

Neogen M. Chavez
RMC Head/Sr. Asst. Vice President
RMC-Southern Mindanao
2nd Floor, DBP Building
Roxas Avenue, General Santos City
Direct Line : (6383) 552.2328; 552.4514
Fax: (6383) 301.1688
E-mail: rmc-sm@devbankphilcom.ph

Fernando G. Lagahit
RMC Head/Sr. Asst. Vice President
RMC-Southeastern Mindanao
2nd Floor, DBP Building
C. M. Recto, 8000 Davao City
Direct Line : (6382) 221.2620; 222.3478
Fax: (6382) 221.2517
E-mail: amosem@devbankphilcom.ph

Catalina A. Marquez
RMC Head/Manager
RMC-Western Mindanao
DBP Building, Don P. Lorenzo St.
Port Area, 7000 Zamboanga City
Direct Line : (6362) 992.7865; 991.1316
Fax: (6362) 991.0359
E-mail: amowm@devbankphilcom.ph

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