Landbank to fund construction of P1.2-B feed mill complex in Isabela

State-run Land Bank of the Philippines is financing the construction of an over a billion-peso feed mill facility in Ilagan, Isabela.

In a statement on Wednesday, Landbank said it signed a financing deal with Ilagan-based Sagittarian Agricultural Philippines Inc. (SAPI) to fund the construction of a 15-hectare feed mill facility in the country’s corn capital.

The state-owned lender will provide a P1.2 billion loan to bankroll the development of the feed mill complex. Landbank is also extending a P100-million credit line to support SAPI’s working capital needs.

The bank said that, once completed, the feed mill facility will be leased to Charoen Pokphand Philippines Corporation (CPFPC)—a leading food and agro-industrial company and a long-standing Landbank client.

The project is expected to increase corn prices from P1.00 to P2.00 per kilogram, benefiting an estimated 97,734 small farmers across Isabela and neighboring provinces, it said.

“With this investment, Landbank reaffirms its commitment to modernizing the agricultural sector, empowering local farmers, and strengthening the country’s food security and supporting the agriculture value chain,” said Landbank president and CEO Lynette Ortiz. — VBL, GMA Integrated News