Land Bank of the Philippines increased its minimum target for a sustainability bond issuance to P30 billion to finance environmental projects and community development initiatives across the country.
The Agriculture, Sustainability, Environment and Socioeconomic Development (ASENSO) bonds are part of a broader strategy by the state-run lender to mobilize capital for priority sectors.
These peso-denominated, fixed-rate instruments carry tenors of 1.5 years and 3 years, offering investors fixed-income returns while supporting measurable social and environmental benefits.
The offering will be available to the public from Jan. 28 to Feb. 6 through the LandBank mobile banking app. Investors can participate with a minimum investment of P10,000 and subsequent increments of P10,000. The bonds are scheduled for listing on the Philippine Dealing & Exchange Corp. on Feb. 16.
Proceeds from the sale will be used for green projects such as renewable energy, clean transport and sustainable water management. The bank also plans to fund social initiatives including food security, affordable housing and employment generation.
LandBank president and chief executive Lynette Ortiz said the bonds allow investors to earn competitive returns while contributing to projects that benefit the environment. Ortiz noted that rising demand for sustainable investments makes it an opportune time to support initiatives that drive national growth.
Interest on the bonds will be paid quarterly and is subject to final withholding tax. China Bank Capital Corporation is acting as the sole issue manager, while both LandBank and China Bank Capital will serve as selling agents.
The issuance follows a 2020 sustainability bond by the lender that raised P5 billion. That previous offering saw significant investor interest, with total bids reaching P16.6 billion, more than 5 times the initial P3 billion target.
The Securities and Exchange Commission confirmed the issuance complies with ASEAN Sustainability Bond Standards.
The bank, which operates in all 82 provinces, remains the largest development financial institution in the Philippines.
