The Development Bank of the Philippines has signed a P2 billion loan agreement with Kabankalan City to fund flood mitigation infrastructure under its ASENSO financing program. The package includes three term loans with tenors of five, ten, and fifteen years, covering climate adaptation and disaster resiliency projects.
The Development Bank of the Philippines has signed a P2 billion loan agreement with Kabankalan City in Negros Occidental to finance infrastructure projects addressing persistent flooding, according to an official announcement. The financing includes a 15-year term loan of P1.68 billion, a 10-year term loan of P318.7 million, and a five-year loan of P1.3 million under the bank's Assistance for Economic and Social Development for LGUs program. DBP is the ninth largest bank in the Philippines by assets, providing credit to infrastructure, MSMEs, environment, and social services sectors.
Kabankalan City is a first-class component city and the largest by land area in Negros Occidental, with a population exceeding 200,000 and serving as a primary rice producer in the province. Flooding has been a decades-long issue, largely attributed to overflow from the Ilog-Hilabanga River, which acts as a natural catch basin during heavy rainfall and typhoons.
The ASENSO program finances local development initiatives including community facilities, water and sanitation systems, healthcare facilities, and public markets. As of December 2025, DBP has approved P173.80 billion in loans to 456 projects under the program. The bank aims to broaden its network of local government partners in 2026 to support long-term economic growth.
This development matters for the Philippine infrastructure sector, where climate adaptation financing is increasingly critical as extreme weather events intensify. Local governments face mounting pressure to address flooding risks that affect agricultural productivity, public safety, and economic activity. For the financial services industry, the transaction demonstrates continued demand for long-tenor municipal lending to support climate resilience. Stakeholders including engineering firms, construction contractors, and local businesses stand to benefit from project implementation.
The financing also aligns with DBP's environmental mandate under its four priority sectors.
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