The Investment Banking Division (IBD) works with clients to help them determine the appropriate financial resources to run the business, make acquisitions, and plan for their financial future. IBD assists public and private corporations in raising funds in the domestic and international capital markets (both equity and debt), as well as in providing strategic advisory services for mergers, acquisitions, syndications and other types of financial transactions.

IBD is tasked with creating value for the bank’s clients working hand-in-hand with their Finance Officer or through the Finance Department. These company clients include large multinational and local companies (Business Finance), government corporations or Local Government Units (Government/Public Finance) or smaller players with high growth prospects that includes Personal Finance of single proprietorships.

IBD services clients via the following:

1. designing, implementing, and monitoring the financial policies of the company
2. planning and execution of the financing program
3. interfacing with the financial community, and / or investors

IBD assists clients in their long-term capital investment decisions – whether to finance investments with equity or debt – and in their short term decisions that deal with short-term balance of current assets and liabilities. IBD may also be tasked by companies in the sourcing of long-term or short-term funds for the latter’s activities that involve balancing risk and profitability. Long-term funds can be provided by ownership equity and long-term credit in the form of term loans and bonds. Meanwhile, short-term funding or working capital is often provided by banks extending a line of credit or via short-term credit facilities.

IBD also offers the following specific services to clients:

• Loans & bonds arrangement
• Fund sourcing
• Specialized financing packaging and arrangement
• Project financing arrangement
• Equity financing arrangement
• Mergers advisory and arrangement
• Acquisition advisory and arrangement
• Technical advisory
• Financial advisory and arrangement
• Capital structuring or packaging
• Financial arrangement
• Corporate rehabilitation
• Loan and Bond Syndication

IBD is an account packaging and originating unit that works with other business units of the PVB, such as the Retail Banking Division (RBD), Corporate Banking Division (CBD), Asset Recovery Division (ARD), and the Treasury Group for required approvals and booking.

IBD is composed of the following personnel:

The Investment Banking Division (IBD) marked its first complete year of operations in 2009, under its former name, Corporate Finance Division (CFD). CFD officially started operations only on August 1, 2008 and was later renamed to Investment Banking Division effective October 1, 2010, as among the marketing units of the bank under the Lending Business Group. The IBD earns mainly on fees generated for account packaging and origination of investment and credit instruments that are evaluated and booked by the other business units of PVB, such as the Retail Banking Division (RBD), Corporate Banking Division (CBD), Trust and Investment Group, Asset Recovery Division (ARD), and the Treasury Group.

Since its inception, IBD has already secured approvals, from the bank’s management and board, through the appropriate booking units, over PhP15Bn of loans and bonds that it originated for the primary participation of the bank or for syndication and subsequent participation by interested financial institutions.

Loans originated by IBD, that were released in 2009 by the other business units of the bank, exceeded its performance targets. Ninety percent (90%) of these new loan accounts arranged by IBD that were released by CBD in 2009 came from the Local Government Unit (LGU) sector, mostly from the 1st and 2nd class LGUs. A variety of LGU infrastructure projects, such as public market, medical center buildings and hotel buildings, are currently on-going and have now been initially funded by the IBD-led loan origination. IBD continues to originate the financial arrangement requirements of a majority of LGU accounts booked by the bank and subsequently participated into by the other private commercial banks.

As part of its arrangement and cross-selling efforts, and in coordination with the bank’s business units, IBD is also instrumental in the arrangement of the successful transfer to the bank’s own branches the LGU Internal Revenue Allotment (IRA) deposit accounts of the various LGU loan accounts requiring the services of IBD.

IBD also continuous to work in strengthening the bank’s partnership with the LGU Guarantee Corporation (LGUGC) with the end view of developing the capital markets and the participation of private banks in LGU financing. LGUGC’s PhP1Bn accreditation of PVB under its first and only LGU Automatic Guarantee Line, enhances the risk rating of debt instruments, by at least 50%, of various LGU loans and bonds that IBD originates for syndication and participation by other financial institutions.

IBD conducts road show presentations to senior officers of financial institutions and regulatory bodies for the prospective syndication and participation of other financial institutions in IBD-arranged LGU Loans and Bonds.

A USAID project, the Private Financial Advisory Network (PFAN), with the objective of facilitating the financial closure of renewable energy and energy efficiency projects, also accredited PVB upon the initiation of IBD.