Landbank raises P 5B from sale of ‘green’ bonds

Land Bank of the Philippines raised P5 billion from its maiden sale of two-year sustainability bonds that will finance “green” and social projects.

The two-year bonds attracted P16.6 billion worth of bids and were sold at a rate of 2.5872 percent.

Landbank had initially scheduled the offer period from Oct. 26 to Nov. 6, but eventually closed the offering as early as Monday “due to the very strong demand and oversubscription,” it said in a statement.

The bonds maturing in 2022 were issued at a minimum of P50,000 and thereafter in multiples of P10,000.

Landbank said the proceeds from the sustainability bonds would be used to fund “various loan programs that support sustainable projects such as green and social projects” under the lender’s sustainable finance framework.

“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 are ventures that help address a social concern and are seen to impact on people’s lives, [which] include projects for basic infrastructure, food security, essential services, affordable housing, employment generation and food security,” Landbank said.

“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,” Landbank president and chief executive Cecilia C. Borromeo said.

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