State-run lender Land Bank of the Philippines will tap the capital markets to raise funds for environmental and social projects. In a statement, Landbank said it is set to issue its first-ever Sustainability Bonds offer to raise at least P3 Billion from the peso-denominated fixed-rate bond offering with a two-year tenor.
Due in 2024, the bonds will be issued in minimum denominations of P50,000 and in multiples of P10,000 thereafter, according to the state lender.
The interest rate is yet to be set, while the offer period will be from October 26 to November 6, 2020.
The bonds’ listing at the Philippine Dealing and Exchange Corporation (PDEx) is scheduled for November 17.
Standard Chartered Bank (SCB) will be the sole lead arranger and bookrunner, while both Landbank and SCB will be selling agents.
“With the pandemic posing both as a pressing challenge and opportunity, it strengthens Landbank’s commitment all the more, with a sharpened focus in supporting sectors and activities for sustainable recovery,” said Landbank president and CEO Cecilia Borromeo.
The bank said it will utilize the proceeds from the issuance to finance various loan programs that support sustainable projects such as green and social projects, as identified in its Sustainable Finance Framework—the Landbank’s blueprint for developing sustainable financing instruments.
Green projects include those that contribute to environmental objectives such as climate change mitigation and adaptation, natural resource, and biodiversity conservation, and pollution prevention and control, among others.
Social projects are ventures that help address a social concern and are seen to impact people’s lives. These include projects for basic infrastructure, food security, essential services, affordable housing, employment generation, and food security.
Landbank said its Sustainable Finance Framework is aligned with sustainable finance principles enumerated in the Sustainability Bond Guidelines 2018 by the International Capital Market Association and the ASEAN Sustainability Bond Standards 2018 by the ASEAN Capital Markets Forum, among others. — DVM, GMA News