Landbank gears up for P20-B bond issue
State-owned Land Bank of the Philippines is preparing to borrow more than P20 billion via sustainability bonds this year, aiming to channel fresh credit into agriculture, renewable energy projects and provincial economies.
Landbank president and chief executive Lynette Ortiz told reporters the bank had secured approvals for a “pretty sizeable” sale, which could be launched in one or two tranches before year’s end.
The peso bonds will likely carry maturities of one to five years—the “sweet spot” of the market, Ortiz said—where investors are showing the most appetite as lingering uncertainty has dampened demand for longer-dated debt.
Notably, the offering would come at a time when the Bangko Sentral ng Pilipinas is about to wrap up its interest rate-cutting cycle.
The securities will be marketed as “Asenso bonds,” an acronym for agriculture, sustainability, environment and social. Ortiz said the proceeds would be directed to targeted programs, from financing entire agricultural value chains to backing clean energy projects.
Funds will also support financial inclusion initiatives such as lending to water districts and local governments, “which is what Landbank’s all about,” she added.
Right window
“When we go to the market, we’d like the public to know that the use of proceeds will be very specific,” she said. “We’re just timing execution and making sure that we issue at the right window.”
Landbank will do its fundraising activity with a healthy balance sheet. The lender posted a P13.29-billion net income for the first quarter of 2025, up 11 percent from a year earlier and 32 percent above its target for the period.
Total assets grew by 5 percent to P3.43 trillion, driven by expansions in both loan and investment portfolios. The bank’s gross loan portfolio climbed by 8 percent to P1.58 trillion, while investments surged by 14 percent to P1.50 trillion, supported by growth in both trading and non-trading portfolios.
Customer deposits, considered a major lifeline for banks, grew by 5 percent to P3.02 trillion.
LandBank expanded its agriculture, fisheries, and rural development loan book to a record P844.61 billion as of the first quarter—cornering 53.4 percent of its total lending portfolio.
