Landbank raises ₱50B from ASENSO Bonds

State-run Land Bank of the Philippines has raised P50 billion from its Agriculture, Sustainability, Environment, and Socioeconomic Development (ASENSO) Bonds, after recording the highest retail participation to date.

Landbank said orders for the offer — which were officially listed on the Philippine Dealing and Exchange Corp. (PDEx) on Monday, February 16 — were more than tenfold the P5-billion minimum offer and exceeded its P30-billion target, prompting an early close.

The bonds fetched a coupon rate of 5.1714% per annum for the 1.5-year tenor Series B bonds and 5.5615% per annum for the three-year tenor Series C bonds, paid quarterly from the issue date and subject to applicable withholding tax. Over 16,914 investors subscribed through the mobile banking application.

“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 chief executive officer Lynette Ortiz said in a statement.

“This is finance with purpose. This is capital national progress. And for Landbank, this is only the beginning,” she added.

Proceeds from the issuances are set to be used for green and social projects across the country, including renewable energy, food security, affordable housing, employment, and socioeconomic empowerment that will benefit farmers, fishers, households, and micro, small, and medium enterprises.

Landbank is mandated to promote rural development while remaining financially viable. It implements the Comprehensive Agrarian Reform Program (CARP), provides assistance to small farmers and fisherfolk, and serves as an official depository of government funds. —VAL, GMA Integrated News