Landbank to raise P30 billion from sustainability bonds

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January 16, 2026 | 12:00am

MANILA, Philippines — State owned Land Bank of the Philippines (Landbank) is targeting to raise a minimum of P30 billion through a sustainability bond issuance aimed at financing projects that promote environmental protection and strengthen community development nationwide.

The offering involves the bank’s Agriculture, Sustainability, Environment and Socioeconomic Development (ASENSO) Bonds, which form part of Landbank’s broader sustainable finance strategy to mobilize capital for priority development sectors.

The peso-denominated, fixed rate ASEAN Sustainability Bonds will be offered in tenors of 1.5 years and three years. These instruments are designed to provide investors with predictable returns while directly supporting projects with measurable environmental and social benefits.

The ASENSO Bonds were first announced to qualified institutional buyers on Jan. 12. The public offer will run from Jan. 28 to Feb. 6 and will be available through the bank‘s mobile banking app, allowing retail investors to subscribe with a minimum investment of P10,000 and in increments of P10,000.

The bonds are expected to be listed on the Philippine Dealing & Exchange Corp. on Feb. 16. Interest on the bonds will be paid quarterly starting from the issue date and will be subject to final withholding tax.

China Bank Capital Corp. is the sole issue manager for the transaction, with Landbank and Chinabank Capital acting as selling agents.

Proceeds from the issuance will be allocated exclusively to eligible green and social projects. These include renewable energy, energy efficiency, green buildings, clean transport, sustainable water management and pollution prevention. Social projects to be financed include food security, affordable housing, health, education, access to essential services, employment generation and broader socioeconomic development initiatives.

The ASENSO Bonds offer investors a unique opportunity to earn competitive, fixed returns while contributing to meaningful projects that benefit communities and the environment, LANDBANK president and CEO Lynette Ortiz said.

“With rising demand for sustainable investments, there is no better time to invest in initiatives that generate positive social and environmental impact while supporting long-term national growth.”

The bond issuance is aligned with Landbank’s Sustainable Finance Framework, which integrates environmental, social and governance principles into the bank’s operations. This framework supports the Philippine Development Plan, the Philippine Sustainable Finance Roadmap and the United Nations Sustainable Development Goals.

The Securities and Exchange Commission has confirmed that the issuance complies with the requirements of the ASEAN Sustainability Bond Standards and the SEC ASEAN Sustainability Bond Circular.

Landbank has continued to expand its portfolio of green, social and sustainability labeled financial instruments