LandBank credit support to PH coconut sector reaches P4.27-B

ITY OF SAN FERNANDO---The Land Bank of the Philippines ( LANDBANK) continues to ex tend available and responsive credit assistance to coconut farmers and other industry stakeholders engaged in the production and processing of coconut-based products.

CUnder its Coconut Production and Processing Financing (Coco-Financing) Program, which has been in place since 2015, LANDBANK has cumulatively released P4.27 billion in loans that supported a total of 16 borrowers and 2,601 coconut farmerbenefi ci ar i es.

The borrowers are composed of six large enterprises/ corporations, four small and medium enterprises (SMEs), three cooperatives, two associations and one non-governmental organization (NGO)— of which nine have outstanding balance of P1.78 billion.

The LANDBANK Coco-Financing Program was developed to finance projects such as planting or replanting, rehabilitation, fertilization and processing of coconuts and its by-products.

As of June 30, 2021, LANDBANK’s total loans to the agriculture sector reached P223.02 billion. Of this amount, P17.39 billion supported crop production of which P340 million covered financing for the coconut industry.

Positive outlook on the UCPB merger LANDBANK remains optimistic in managing the implications of its impending merger with the United Coconut Planters Bank (UCPB) to its financial profile, as it looks ahead in providing more support interventions for the Philippine coconut sect or.

Based on LANDBANK’s projections on the merger, Common Equity Tier 1 (CET1) ratio by end-2021 will remain higher than the 11% regulatory requirement of the BSP. CET1 ratio is used to measure a bank's core equity capital, compared with its total risk-weighted assets, and signifies a bank's financial strength.

The Bank also maintains it is more than capable of absorbing the financial impact of the merger since the acquisition of the shares of stock and attendant absorption of UCPB’s assets and liabilities will similarly expand deposits, loans, and capit al .

Projections from LANDBANK indicate that the combined resources of the state-run banks will amount to almost ?3 trillion in assets by the end of the year, further solidifying LANDBANK’s position as the second-largest bank in the country in terms of assets.

President Duterte has issued Executive Order No. 142 on June 25, 2021, authorizing the merger between LANDBANK and UCPB, where LANDBANK will be the surviving entity.

“The mandate of LANDBANK has continuously evolved over the years. Aside from assisting farmers of palay, coconut and other crops, fishers, and all stakeholders in the agri-business value chain, LANDBANK has become a reliable contributor to the National Government’s development agenda towards supporting other key economic sectors that promote nation-building. LANDBANK’s merger with UCPB only enhances our capacity to serve the whole agriculture sector and the nation at large,” said LANDBANK President and CEO Cecilia C. Borromeo.

Interested borrowers of the LANDBANK Coco-Financing Program may contact the nearest open LANDBANK Lending Center or Branch nationwide, or call LANDBANK’s customer service hotline at (02) 8-405-7000 or at PLDT Domestic Toll Free 1-80010-405-7000.

For more updates, please follow the official LANDBANK Facebook, Instagram and YouTube accounts (@landbankofficial), and Twitter (@LBP_Official); join our Viber community (@LANDBANK); or visit the LANDBANK website ( w w w.l andbank.com) .