A surge of investment poured into the Land Bank of the Philippines, exceeding expectations with a remarkable P50 billion raised through its sustainability bond offering. Initial plans called for P30 billion, but demand from investors – both large institutions and individual citizens – proved overwhelming, signaling a powerful commitment to responsible growth.
The offering, known as the Agriculture, Sustainability, Environment, and Socioeconomic Development (ASENSO) Bonds, attracted over ten times the minimum required amount, forcing an early closure of the subscription period. This intense interest underscored a growing appetite for investments that deliver both financial returns and positive social impact.
Investors secured rates of 5.1714% per annum for the 1.5-year bonds and 5.5615% per annum for those extending to three years. These bonds are now actively traded on the Philippine Dealing and Exchange Corp., providing liquidity and accessibility for investors.
The funds generated will be strategically deployed across the nation, fueling projects focused on renewable energy, bolstering food security, and expanding access to affordable housing. These initiatives are designed to empower farmers, fishers, small businesses, and families, driving inclusive and climate-resilient development.
LANDBANK has pledged rigorous oversight, ensuring all projects align with its comprehensive Sustainable Framework. A detailed report outlining the allocation of funds will be published within a year, demonstrating transparency and accountability to investors and the public.
This bond offering marked a significant milestone, becoming the first in the country to allow direct purchase through a mobile banking app. The LANDBANK Mobile Banking App (MBA) facilitated over 7,000 transactions, opening up investment opportunities to a wider audience.
Nearly 17,000 individual investors participated, utilizing the mobile app, in-branch services, and authorized selling agents. This broadened access to financial instruments represents a fundamental shift in how citizens can participate in national development.
LANDBANK’s President and CEO, Lynette V. Ortiz, hailed the offering as a triumph of inclusive finance and purposeful capital allocation. She emphasized that this is not a singular event, but rather a foundational step towards a future where finance actively supports national progress.
China Bank Capital Corp. served as the sole issue manager, working alongside LANDBANK and Chinabank Capital as selling agents to ensure a smooth and successful offering. This collaboration highlights the strength of partnerships in driving impactful financial initiatives.
The success of the ASENSO Bonds arrives on the heels of a record-breaking year for LANDBANK, with net income soaring by 24.38% to reach P43.98 billion. This financial strength positions the bank to further expand its commitment to sustainable and inclusive growth.
