LANDBANK to raise PHP 5 billion via ASENSO Bonds

MANILA — LANDBANK said it is set to raise a minimum of PHP 5 billion through a sustainability bond issuance aimed at funding projects that promote environmental sustainability and strengthen community development nationwide.

The bonds, formally called Agriculture, Sustainability, Environment and Socioeconomic Development (ASENSO) Bonds, are part of LANDBANK’s broader sustainable finance strategy to mobilize funding for priority development sectors.

LANDBANK said the offering consists of Philippine peso-denominated, fixed-rate ASEAN Sustainability Bonds with tenors of 1.5 years and 3 years.

The bank said the structure is designed to give investors a fixed-income investment while channeling proceeds to initiatives with “measurable environmental and social benefits.”

LThe ASENSO Bonds were first announced to Qualified Institutional Buyers (QIBs) on Jan. 12, 2026.

LANDBANK said the bonds will be available to the public from Jan. 28 to Feb. 6, 2026.

Subscriptions will be made available via the LANDBANK Mobile Banking App, which the bank said is intended to provide a more convenient way for investors to participate.

The minimum investment is at PHP 10,000, with subscriptions allowed in increments of PHP 10,000.

The bonds are expected to be listed on the Philippine Dealing & Exchange Corp. on Feb. 16, 2026, LANDBANK said.

LANDBANK said interest on the ASENSO Bonds will be paid quarterly starting from the issue date.

The interest payments will be subject to final withholding tax.

China Bank Capital Corporation (Chinabank Capital) is the sole issue manager for the bond offering, LANDBANK said.

LANDBANK and Chinabank Capital will also act as the selling agents for the issuance, the bank said.

Proceeds from the issuance will be allocated exclusively to eligible green projects, including renewable energy, energy efficiency, green buildings, clean transport, sustainable water management and pollution prevention.

LANDBANK said proceeds will also go to social projects such as food security, affordable housing, health, education, access to essential services, employment generation and broader socioeconomic development.

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

Sustainability-labeled bonds have increasingly become a funding channel for banks and companies seeking to match investor demand for instruments tied to environmental and social outcomes, while also expanding the pool of long-term capital for infrastructure and community-focused programs.

LANDBANK said the ASENSO Bonds are aligned with its Sustainable Finance Framework, which integrates environmental, social and governance principles into the bank’s 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 has confirmed the issuance complies with requirements under the ASEAN Sustainability Bond Standards and the SEC ASEAN Sustainability Bond Circular, LANDBANK said.

By tying the issuance to regional bond standards, the bank is positioning the offering within a set of guidelines meant to strengthen disclosure and use-of-proceeds commitments, which are key considerations for investors evaluating sustainability claims.

LANDBANK said the Bangko Sentral ng Pilipinas has recognized the bank as one of the first mover banks in promoting sustainable finance. It said it continues to expand its portfolio of green, social and sustainability-labeled financial instruments.

The bank pointed to its track record in the market, saying it launched its maiden sustainability bond issuance in 2020 and successfully raised PHP 5 billion.

LANDBANK said that 2020 offering drew strong investor demand, with total bids reaching PHP 16.6 billion, which was more than five times the initial target of PHP 3 billion.

The bank’s decision to set a minimum of PHP 5 billion for the new issuance reflects both its funding needs and the expectation that demand for labeled bonds will continue, particularly as more institutions adopt sustainability policies that favor instruments with defined environmental and social allocations.

For investors, the fixed-rate structure and quarterly interest payments are likely to appeal to those seeking predictable returns, while the sustainability label can fit mandates that require capital to be deployed toward green or socially beneficial categories.

For communities and project developers, the bank’s stated eligibility list signals potential financing support for sectors that span climate-related investments, such as renewable energy and clean transport, as well as basic development priorities like food security, affordable housing, health and education.

LANDBANK said interested investors can access the Offering Circular (OC) on the LANDBANK website.