Landbank Raises PHP 5 Billion Fixed Rate ASEAN Sustainability Bonds on PDExPosted on: November 17, 2020
17 November 2020, Makati, Philippines — Land Bank of the Philippines (LANDBANK) returns to the local debt market today with the maiden listing of its PHP 5 Billion Fixed Rate ASEAN Sustainability Bonds at the Philippine Dealing & Exchange Corp. (PDEx). The 2-year bond carries an interest rate of 2.5872% per annum to be paid quarterly.
Proceeds of the issuance will be used to finance LANDBANK’s various green projects for climate change mitigation and adaptation, as well as social projects for basic infrastructure and employment opportunity purposes.
PDEx President and CEO Antonino A. Nakpil mentioned in his welcome remarks the timely issuance of the bonds, given that it came just a few days after the succession of typhoons in the country. He also congratulated the bank for being recognized for its climate financing and digital banking initiatives.
“We understand that congratulations are also in order for LANDBANK for being recognized in the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) Development Awards 2020 for its Green Climate Fund (GCF) Program, as well as its and Digital Onboarding System (DOBS),” mentioned Mr. Nakpil.
In her speech, LANDBANK President and CEO Cecilia C. Borromeo thanked their investors for the strong demand for Sustainability Bonds despite the current market conditions in light of the COVID-19 pandemic.
“We are also grateful to our investors for the overwhelming reception as we raised PHP 5 Billion from the initial PHP 3 Billion issue size. The offering was oversubscribed by more than five times with total bids reaching PHP 16.6 Billion on the very first day of our offer period. Amidst the backdrop of a recovering economic environment, we are pleased with the strong investor confidence in the Bank’s stable financial position,” said Ms. Borromeo.
This 32nd listing for 2020 brings the year-to-date total of new listings to PHP 348.15 Billion, pushing the total level of tradable corporate debt instruments to PHP 1.47 Trillion issued by 56 companies, comprised of 205 securities.