LandBank raises Php 6 B from LTNCD offering

MANILA, Oct. 9 (PNA) — Land Bank of the Philippines (LandBank) the largest government-owned financial institution, has raised Php 6-billion worth of Long Term Negotiable Certificate of Deposits (LTNCD) as a first tranche out of a Php 15 billion program that the Bangko Sentral ng Pilipinas approved for the bank to issue.

The offer, which is the second LTNCD issuance this year, attracted a strong orderbook of over Php 7 billion. However, LandBamnk decided to only award Php 6 billion to match its expansion plans and lending activities to mandated priority sectors. The final size is twice the initial announced Php 3-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. “We thank the investor community for partnering with us in nation-building.

Proceeds of the issuance will make long-term funding available for the Bank’s development programs and lending activities for our mandated and priority sectors,” said LandBank President and chief Executive Gilda E. Pico.

As of June 30, 2015, LandBank is the fourth largest bank in terms of assets, loans and deposits. In the same period, the Bank generated a net income of Php 7.2 billion, 19 percent higher than the same period last year, when it made Php 6.04 billion.

LandBank is the only universal bank present in all of the country’s 81 provinces with a nationwide network of 356 branches and 1,454 ATMs. It remains the biggest credit provider to small farmers and fishers, and local government units, and is the biggest lender to microenterprises and SMEs among government financial institutions.

HSBC acted as the Sole Lead Manager and Bookrunner for the transaction, and acted as Selling Agent together with LandBank and Multinational Investment Bancorporation (MIB). (PNA)