LandBank sets interest rate for P3-B sustainability bonds

CITY OF SAN FERNANDO---State-run Land Bank of the Philippines (LANDBANK) on Monday announced it has set the interest rate of 2.5872 percent for its first-ever Sustainability Bonds offer to fund environmental and social projects.

During the Sustainability Bonds virtual investors' briefing held last October 21, the offer period was initially scheduled from October 26 to November 6, 2020. However, due to the very strong demand and oversubscription, LANDBANK said it is now closing the offer period on Monday, October 26, 2020.

LANDBANK is looking to tap and access the capital markets to raise at least P3 Billion from the peso-denominated fixed-rate bond offering with a two-year tenor. Due in 2022, the bonds will be issued in minimum denominations of P50,000 and in multiples of P10,000 thereafter.

Standard Chartered Bank (SCB) is the sole lead arranger and bookrunner, while both LANDBANK and SCB will be selling agents.

LANDBANK will utilize the proceeds from the issuance to finance various loan programs that support sustainable projects such as green and social projects.

Green Projects include those that contribute to environmental objectives such as climate change mitigation and adaptation, natural resource and biodiversity conservation, and pollution prevention and control, among ot her s.

Social Projects are ventures help address a social concern and seen to impact on people's lives. These include projects for basic infrastructure, food security, essential services, affordable housing, employment generation, and food security.

---(PR)