In a major move to fund national development priorities, the Land Bank of the Philippines (Landbank) is set to raise a minimum of ₱30 billion through a new issuance of sustainability bonds. Dubbed the Agriculture, Sustainability, Environment, and Socioeconomic Development (Asenso) Bonds, the initiative seeks to mobilize capital for projects that benefit both the environment and local communities across the archipelago.
Investment Details and Public Offering
The bonds are Philippine Peso-denominated, fixed-rate securities that comply with Asean Sustainability Bond Standards. They will be offered with tenors of 1.5 years and 3 years, providing a secure fixed-income avenue for investors. Interest will be paid quarterly and will be subject to final withholding tax.
After an initial announcement to Qualified Institutional Buyers on January 12, 2026, the bonds will be made available to the general public from January 28 to February 6, 2026. A key feature of this offering is the convenience of subscription through the Landbank Mobile Banking App. The minimum investment is set at ₱10,000, with increments of the same amount. The bonds are scheduled to be listed on the Philippine Dealing & Exchange Corp. by February 16, 2026.
China Bank Capital Corporation (Chinabank Capital) is the Sole Issue Manager, with both Landbank and Chinabank Capital acting as Selling Agents for the offering.
Funding Green and Social Impact Projects
The proceeds from this substantial bond issuance are earmarked exclusively for eligible projects with clear environmental and social objectives. The fund allocation is a direct reflection of Landbank's sustainable finance strategy.
Green projects that will be financed include:
- Renewable energy initiatives
- Energy efficiency programs
- Green building construction
- Clean transportation systems
- Sustainable water and wastewater management
- Pollution prevention and control
Concurrently, the bonds will also fund critical social projects such as:
- Food security and affordable housing
- Healthcare and education access
- Employment generation
- Broad socioeconomic advancement and access to essential services
Aligning with National and Global Sustainability Goals
Landbank President and CEO Lynette V. Ortiz emphasized the dual benefit of the Asenso Bonds. She stated that they offer investors a chance to earn competitive, fixed returns while directly contributing to projects that create positive impact for communities and the environment. She highlighted the growing demand for sustainable investments as a timely driver for such initiatives that support long-term national growth.
This issuance is firmly anchored on Landbank's Sustainable Finance Framework, which integrates environmental, social, and governance (ESG) principles into its operations. The framework supports the Philippine Development Plan, the Philippine Sustainable Finance Roadmap, and the United Nations Sustainable Development Goals.
The Securities and Exchange Commission (SEC) has confirmed the offering's compliance with the Asean Sustainability Bond Standards and its relevant guidelines. Furthermore, the Bangko Sentral ng Pilipinas recognizes Landbank as a pioneer in promoting sustainable finance in the country.
This marks Landbank's second foray into the sustainability bond market, following a highly successful maiden issuance in 2020. That initial offering, targeting ₱3 billion, was met with overwhelming demand, attracting total bids of ₱16.6 billion and eventually raising ₱5 billion.
Interested investors can find the complete Offering Circular on the official Landbank website at https://www.landbank.com.
