Landbank to issue P3-B sustainability bonds

State-run Land Bank of the Philippines plans to raise at least P3 billion from the issuance of its first-ever sustainability bonds to fund environmental and social projects.

Landbank president and chief executive officer Cecilia Borromeo said the bank is set to offer peso- denominated fixed-rate sustainability bonds with a tenor of two years from Oct. 26 to Nov. 6.

The bank will utilize the proceeds to finance various loan programs that support green and social projects, as identified in Landbank’s Sustainable Finance Framework, the bank’s blueprint for developing sustainable financing instruments.

“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,” Borromeo said.

Due in 2024, the bonds will be issued in minimum denominations of P50,000 and in multiples of P10,000 thereafter.

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

The bonds will be listed at the Philippine Dealing and Exchange Corp. ( PDEx) on Nov. 17.

According to Landbank, qualified 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 others.

Social projects include ventures that provide basic infrastructure, food security, essential services, affordable housing and employment generation.

Based on data from its website, Landbank’s gross portfolio amounted to P858.85 billion as of Aug. 31, 2020.

These are deployed to various sectors, including agriculture and fisheries; micro, small and medium enterprises; housing; health care; and environment.