Landbank raises P50B from sustainability bonds
Land Bank of the Philippines (Landbank) was able to raise nearly double the planned amount of its sustainability bonds sale amid strong retail and institutional demand.
In a statement, Landbank said it secured P50 billion via the Agriculture, Sustainability, Environment and Socioeconomic Development (Asenso) Bonds. This exceeded both the P30-billion target and the P5-billion minimum offer.
The bonds were made available in tenors of 1.5 years and 3 years. Respectively, they carry interest rates of 5.1714 percent and 5.5615 percent per year.
These were officially listed on the Philippine Dealing and Exchange Corp. (PDEx) on Feb. 16.
”Proceeds will continue to finance projects that uplift communities, expand economic opportunities, and advance a more sustainable and inclusive future,” the state-run bank said in a statement.
The sale marked the country’s first corporate bond offering made available for direct in-app purchase.
This followed the issuance to the public through Landbank’s mobile banking app with a P10,000 minimum investment, in increments of P10,000. In total, transactions reached 7,000.
It was available from Jan. 28 to Feb. 6, but the state lender said strong demand prompted them to an early close of the sale.
“Beyond the scale of capital raised, this issuance stands out for its inclusivity and innovation. For the first time, corporate bonds were made accessible for direct purchase through a mobile banking application,” Landbank president and CEO Lynette Ortiz said.
The Asenso Bonds are in line with Landbank’s Sustainable Finance Framework and are expected to fund green and social projects nationwide.
