Landbank to issue bonds in 1st quarter 2026

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Marco Luis Beech - The Philippine Star

December 22, 2025 | 12:00am

Land Bank of the Philippines

Businessworld / File

MANILA, Philippines — State-owned Land Bank of the Philippines (Landbank) is eyeing the offer of sustainability bonds by the first quarter of next year, aiming to provide investors with a safe fixed-income option that delivers returns higher than those of conventional savings accounts and time deposits.

In a statement yesterday, Landbank announced that the upcoming bond issuance aims to secure long-term funding to expand the bank’s current sustainable lending initiatives.

“Proceeds from the bonds will support national development priorities, including agriculture, medium, small and micro enterprises, renewable energy, housing and infrastructure,” the state-run firm said.

While the bank has yet to disclose the amount, Landbank president and CEO Lynette Ortiz told reporters last September that they are waiting for the proper timing and execution of the offering, which is set to be more than P20 billion.

“The planned issuance aims to mobilize long-term funding to scale up Landbank’s existing sustainable lending programs and further strengthen its leadership in sustainable finance,” the bank said.

Ortiz previously stated that Landbank is still in the process of determining the “sweet spot” for the bond tenor, which will likely be one to five years, and is still deciding whether to issue it in one or two tranches.

By October 2025, Landbank had released P176.48 billion in sustainable finance loans, aiding the shift toward renewable energy. This also includes support on clean transport, water access, housing, disaster resilience and health system improvements.

Landbank also entered into a memorandum of agreement with the Department of Energy (DOE) to promote renewable energy development through strategic collaborations under the Philippine Geothermal Resource De-Risking Facility.

The DOE will act as the executing agency, providing policy guidance and governance, establishing technical standards and overseeing the program’s overall implementation under the agreement.

Landbank will serve as the facility’s administrator and manager, handling sub-loan applications, disbursing funds based on milestones, managing collections and reporting on the program to ensure its effective nationwide implementation.

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