State-run Land Bank of the Philippines (LANDBANK) successfully listed its P5 billion maiden offering of Sustainability Bonds on the Philippine Dealing and Exchange Corp. (PDEx) during a virtual ceremony held on November 17.
The issuance was more than five times oversubscribed, with total bids reaching P16.6 Billion, leading to an increase in the total issue size from P3 Billion to P5 Billion. LANDBANK closed the offer period on its very first day of offering last October 26, 2020 given the overwhelming market demand for the issue.
“Amidst the backdrop of a recovering economic environment, we are pleased with the strong investor confidence in LANDBANK’s stable financial position. The strong interest is also a clear reflection of the conscious and growing demand for environmental and socially responsible programs and initiatives that LANDBANK promotes,” said LANDBANK President and CEO Cecilia C. Borromeo.
The LANDBANK Sustainability Bonds were priced at a coupon rate of 2.5872% per annum, payable quarterly, the lowest rate among comparable issuers. It has a tenor of two years, maturing in 2022. The minimum investment amount is P50,000 and in multiples of P10,000 thereafter.
The Sustainability Bonds are designed to finance various loan programs that support sustainable green and social projects in accordance with LANDBANK’s Sustainable Finance Framework.
Standard Chartered Bank (SCB) is the Sole Arranger and Bookrunner of the bonds, as well as co-Selling Agent with LANDBANK.
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