LandBank raises P6b
STATE-RUN Land Bank of the Philippines, the largest government-owned financial institution, recently raised P6 billion worth of long-term negotiable certificate of deposits to augment its long-term funding for development programs and lending activities.
The bank said in a statement Friday the issue was the first tranche out of a P15-billion program earlier approved by the Bangko Sentral ng Pilipinas.
The issuance, the second for the bank this year, attracted a strong order book of over P7 billion. LandBank only awarded P6 billion to match its expansion plans and lending activities to mandated priority sectors.
“The final size was twice the initial announced P3 billion issue at the start of the offer period. The strong demand helped LandBank price at the lowest end of its pricing guidance, or at 3.75 percent per annum for the instrument, which has a maturity of five and a half years, and will be issued on Oct. 9, 2015,” it said.
LandBank president and chief executive Gilda Pico said the proceeds of the issuance “will make long-term funding available for the bank’s development programs and lending activities for its mandated and priority sectors.”