Landbank to list bonds for environmental projects

The Land Bank of the Philippines is set to list its P3-billion bond offering with the Philippine Dealing and Exchange Corp. next month.

In a recent statement, the staterun bank announced the launch of its sustainability bonds aimed at raising funds for environment and social projects.

The peso- denominated fixedrate bonds due in 2024 have tenor of two years. The offering will be issued in minimum denominations of P50,000 and in multiples of P10,000 thereafter.

The offer period runs from October 26 to November 6.

Landbank tapped Standard Chartered Bank to be the sole lead arranger and bookrunner of the transaction. Both banks are the selling agents.

“With the pandemic posing both as a pressing challenge and opportunity, it strengthens LandBank’s commitment all the more, with a sharpened focus in supporting sectors and activities for sustainable recovery,” Landbank President and CEO Cecilia C. Borromeo said.

The proceeds from the transaction will finance loan programs supporting green and social projects identified in the bank’s Sustainable Finance Framework.

Among the green projects are climate change mitigation and adaptation, natural resource and biodiversity conservation and pollution prevention and control.

Meanwhile, Landbank cited programs for basic infrastructure, food security, essential services, affordable housing, employment generation, and food security as some of the social projects.

Recently, the state-owned bank stated that it will be providing a 60day grace period on loan and creditcard payments following the passage of Republic Act 11494, a law aiming “to accelerate the recovery and bolster the resiliency of the Philippine economy.”

The one-time moratorium covers all existing, current and outstanding loans falling due from September 15 to December 31.

“Landbank understands how providing loan relief can significantly support our clients during these difficult times,” Borromeo said. “We look to ease their financial concerns as we continue navigating the challenges of this pandemic.”