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LANDBANK to issue P3-B Sustainability Bonds
State-run Land Bank of the Philippines (LANDBANK) is set to issue its first-ever Sustainability Bonds offer to fund environmental and social projects. LANDBANK is looking to tap and access the capital markets to raise at least P3 Billion from the peso-denominated fixed-rate bond offering with a two-year tenor. Due in 2024, the bonds will be issued in minimum denominations of P50,000 and in multiples of P10,000 thereafter. Interest rate is expected to be set on October 23 while offer period is scheduled from October 26 to November 6, 2020. Listing at the Philippine Dealing and Exchange Corporation (PDEx) is set on November 17. Standard Chartered Bank (SCB) will be the sole lead arranger and bookrunner, while both LANDBANK and SCB will be selling agents. “With the pandemic posing both as a pressing challenge and opportunity, it strengthens LANDBANK’s commitment all the more, with a sharpened focus in supporting sectors and activities for sustainable recovery,” said LANDBANK President and CEO Cecilia C. Borromeo in her speech during the Sustainability Bonds virtual investors' briefing held on October 21. LANDBANK will utilize the proceeds from the issuance to finance various loan programs that support sustainable projects such as green and social projects, as identified in LANDBANK’s Sustainable Finance Framework—the Bank’s blueprint for developing sustainable financing instruments. Green Projects include those that contribute to environmental objectives such as climate change mitigation and adaptation, natural resource and biodiversity conservation, and pollution prevention and control, among others. Social Projects are ventures help address a social concern and seen to impact on people's lives. These include projects for basic infrastructure, food security, essential services, affordable housing, employment generation, and food security. LANDBANK’s Sustainable Finance Framework is aligned with sustainable finance principles enumerated in the Sustainability Bond Guidelines 2018 by the International Capital Market Association and the ASEAN Sustainability Bond Standards 2018 by the ASEAN Capital Markets Forum, among others.
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LANDBANK grants 60-day timeout on loan payments
To continue helping clients cope with the impact of the COVID-19 pandemic, the Land Bank of the Philippines (LANDBANK) is granting a two-month grace period on loan and credit card payments. LANDBANK is providing a one-time 60-day moratorium for all existing, current, and outstanding loans falling due from September 15 until December 31, 2020, without incurring interest on interests, penalties, fees, or other charges. This is in support of the implementation of Republic Act No. 11494 or the “Bayanihan to Recover as One (BARO) Act.” Credit card transactions made, including fees or charges incurred, prior to September 15 shall also be covered by the moratorium. For credit card payments, any unpaid balance from transactions and fees or charges shall not incur interest or finance charges during the mandatory grace period. However, after the end of the applicable grace period, the said unpaid balance shall incur interest or finance charges if not paid in full on new due date. “LANDBANK understands how providing loan relief can significantly support our clients during these difficult times. We look to ease their financial concerns as we continue navigating the challenges of this pandemic,” said LANDBANK President and CEO Cecilia C. Borromeo. LANDBANK will apply the 60-day grace period automatically, without the need for borrowers and credit card holders to apply or request for the relief measure. However, for LANDBANK credit cardholders with Automatic Debit Arrangements (ADA) for payments, they must inform the Bank that they would like to avail of the relief. The grace period shall commence from the payment due date of loans, with principal and/or interest, including amortizations, falling due from September 15 until December 31, 2020. Meanwhile, credit card transactions made on and after 15 September are no longer covered by the BARO Act and shall continue to incur interest or finance charges if not fully paid on or before its original due date. LANDBANK previously granted a similar grace period for loan payments falling due from March 18 to June 30, 2020, in support of Republic Act No. 11469 or the “Bayanihan to Heal as One Act.” Loan accounts that benefitted from this grace period will also benefit from the BARO Act if it remains an existing, current, and outstanding loan as of September 15, 2020. Meanwhile, fund transfer fees are still waived for InstaPay and PESONet transactions until December 31, 2020. For more information on LANDBANK’s 60-day grace period for loan and credit card payments, please visit the LANDBANK website at www.landbank.com/faqs.
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LANDBANK’s online accounts opening breaches 1-M mark
The boom in digital banking being experienced in the country as a result of the Covid-19 pandemic has resulted in an increase in online account opening and other digital banking services, said the Land Bank of the Philippines (LANDBANK). The Bank has recorded 1,039,926 accounts opened online through its Digital Onboarding System (DOBS), as demand for online banking services as well as safer and more convenient ways to transact with banks continue to surge. About 492,156 accounts were opened from January to September 2020, including 11,972 for Overseas Filipino Bank accounts—LANDBANK’s digital-only branchless bank subsidiary. “This milestone is a welcome development for the Bank as it proves that Filipinos are responsive to the improvements and innovations that we implement, designed to provide them additional channels for their banking needs, as well as a more convenient banking experience in this digital age,” said LANDBANK President and CEO Cecilia C. Borromeo. LANDBANK DOBS, a pioneering web application among Philippine banks, was launched in 2019 with the goal of reducing the account opening time from 30-45 minutes to only 10 minutes. It also simplifies the account enrolment process for individuals and institutional clients. Aside from hassle-free account opening, DOBS also provides automatic enrollment to LANDBANK iAccess for internet banking, the LANDBANK Mobile App for convenient banking transactions through their smartphones, and the LANDBANK Link.BizPortal for payment of bills, products and services to the enrolled merchants in the system. The system also allows existing DOBS account holders to update their information through the system, a move to decongest client visits in Bank’s branches, especially in this time of pandemic. “This is only the start for the Bank’s digitization agenda as we also look forward to streamlining other Bank processes using new technologies such as loan application, among others,” President Borromeo said. For this banking innovation, LANDBANK has been recognized as “Asia’s Most Inclusive Bank” by the Financial Insights Innovation Awards 2019, and was conferred as “Digital Trailblazer in Financial Services” by the Bangko Sentral ng Pilipinas (BSP). Access the DOBS through the LANDBANK’s official website (www.landbank.com) or through the Digital Corner of selected LANDBANK branches dedicated for walk-in clients who wish to access the system. Watch the tutorial video on how to apply thru DOBS via the LANDBANK YouTube Channel (www.youtube.com/c/LANDBANKOfficial) For more information about LANDBANK’s DOBS, clients may contact the nearest open LANDBANK Branch nationwide, or call LANDBANK’s customer service hotline at (02) 8-405-7000 or at PLDT Domestic Toll Free 1-800-10-405-7000.
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Institutional investor wins Premyo Bonds Rewards third-quarter grand prize
(first row) National Treasurer Rosalia V. De Leon (right) and Arden Botanical Estate sales and marketing head Rowena Espiritu (left), award P1 million and a condo unit from Megaworld Corporation to Premyo Bonds Third Quarter Rewards Draw grand winner National Power Corporation (NPC) Provident Fund, represented by NPC Provident Fund Chairman Alexander P. Japon (center). They are joined by (2nd row, left to right) Deputy Treasurer Atty. Erwin D. Sta. Ana, LANDBANK Trust Banking Group First Vice President Lolita M. Almazar, Deputy Treasurer Sharon P. Almanza, and Deputy Treasurer Atty. Gisela F. Lood. The National Power Corporation (NPC) Provident Fund received the cash and non-cash rewards for the “Premyo Bonds Para sa Bayan” (Premyo Bonds) Third Quarter Rewards Draw promo of the Bureau of the Treasury (BTr) and partner institutions. The ceremonial turnover—which was held on October 2 at the Ayuntamiento Building, Intramuros in Manila—was led by National Treasurer Rosalia V. De Leon, Deputy Treasurers Atty. Erwin D. Sta. Ana, Atty. Gisela F. Lood and Sharon P. Almanza, and Land Bank of the Philippines (LANDBANK) Trust Banking Group First Vice President Lolita M. Almazar. They were joined by Rowena Espiritu, sales and marketing head of Arden Botanical Estate, Megaworld Global Estate, Inc. The NPC Provident Fund—which made its Premyo Bond placements through LANDBANK—received a P1-million cash prize and a condominium unit from Megaworld Corporation. The rewards were accepted for the institution by NPC Provident Fund Chairman Alexander P. Japon. The Premyo Bonds are deemed one of the safest and affordable short-term investment products when it was offered from November 25 to December 13, 2019. Issued by the National Government, the bonds were offered at a minimum denomination of P500 with a fixed interest rate per annum of 3%. A Premyo Bond investment of P500 entitles the investor to one raffle ticket. In his video message during the Third Premyo Bonds Draw, Finance Secretary Carlos G. Dominguez urged the raffle winners to reinvest their money in government bonds to help support the nation’s fight against the COVID-19 pandemic. The Premyo Bonds were first offered to the public last year by the National Government through the BTr, with LANDBANK as one of the Joint Lead Issue Managers. Other Joint Issue Managers were private banks BDO Capital and Investment Corp., China Bank Capital Corp., and First Metro Investment Corp. The Issue Managers also served as Selling Agents. Aside from the grand winner, a total of 115 Premyo Bond investors also won cash prizes, including 100 3rd cash reward winners of P20,000 each, and 15 2nd cash reward tier winners of P100,000 each. The Fourth Quarter Rewards Draw for the Premyo Bonds will be held on December 18, 2020.
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German award body cites LANDBANK for financial services innovations
Philippine Deputy Consul General Emil Fernandez (2nd from left) receives the Karlsruhe Sustainable Finance Award conferred to Land Bank of the Philippines (LANDBANK) for “Sustainable Finance” from (left to right) Mr. Jochen Ehlgoetz, CEO of Technology Region of Karlsruhe, Mr. Tom Hoyem, Member of the City Council of Karlsruhe, and Mr. Arshad Rab, CEO of the European Organization for Sustainable Development. State-run Land Bank of the Philippines (LANDBANK) was presented with a Certificate of Merit for “Best Innovation in Financial Services” in this year’s Karlsruhe Sustainable Finance Awards held in Karlsruhe, Germany last September 30, 2020. This is the 8th consecutive year that LANDBANK has received the honor since 2013. LANDBANK was cited for its successful implementation of the “Enhanced Environmental and Social Safeguards Relative to Credit Delivery,” an innovative initiative for conducting environmental and social due diligence (ESDD) for all Bank-financed projects and accounts. This is to ensure compliance to applicable environmental and social laws and regulations, which in turn minimizes credit risks. The policy enhancement covers identification, assessment, mitigation, monitoring of environmental, climate change, and social risks, aspects, impacts, as well as economic, environmental and social benefits of projects financed by LANDBANK. “LANDBANK continues to make strides in embedding environmental and social sustainability into our policies and organizational culture. By promoting sustainable financing, we encourage our clients to adopt similar approaches in their own business strategies and operations, while ensuring that they comply with local and international environmental regulations,” said LANDBANK President and CEO Cecilia C. Borromeo. Deputy Consul General Emil Fernandez of the Philippine Consulate General in Frankfurt received the award on behalf of LANDBANK. LANDBANK’s award-winning Administrative Order No. 26 (Enhanced Environmental and Social Safeguards Relative to Credit Delivery) expands the Bank’s Environmental Due Diligence (EDD) system, which previously only conducted environmental impact assessments for every project that the Bank finances—from loan packaging up until the loan is fully paid—coupled with an environmental risk rating. All Bank-financed projects are vetted as to its potential environmental impacts, provided recommendations for possible environmental management, and measured and monitored for compliance. The Bank’s comprehensive compliance management system ensures that risks associated with penalties and legal issues due to environmental violations are minimized. The resulting environmental compliance report on the environmental performance of its clients keep the Bank informed of potential risks, while providing opportunities for clients to put in place mitigation mechanisms that reduce adverse impacts on their project operations. Since the EDD was implemented, environmental and social risks are mitigated, as it brought awareness on the importance of compliance to environmental and social laws/regulations which benefitted both stakeholders and the host community. As a result, natural habitats, physical cultural property or heritage sites, and protected areas are preserved. A total of 4,728 project and account assessments have been conducted since the EDD system was first implemented in 2004 up to December 2019. Of this number, 461 were accomplished using the enhanced ESDD tool under LANDBANK Administrative Order No. 26. The Global Sustainable Finance Awards in Karlsruhe honors financial institutions and related organizations with significant contributions to the field of sustainable banking and finance. It is organized by the European Organisation for Sustainable Development (EOSD), tasked to develop strategies, programs and initiatives, and undertake projects that contribute to the implementation of the EU Strategy for Sustainable Development, aimed at promoting sustainable economic development and environmental protection.
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LANDBANK offers credit assistance to help LGUs buy palay from local farmers
Small rice farmers now have an alternative market for their produce as state-owned Land Bank of the Philippines (LANDBANK) announced it has approved a total of P4.3 billion in loans to allow local government units (LGUs) to purchase palay from local farmers. Under the Bank’s “PALAY ng Lalawigan” (PAlay aLAY sa Magsasaka ng Lalawigan) Lending Program, LANDBANK said it has so far approved loans to six (6) LGUs. The PALAY ng Lalawigan Lending Program—officially launched in October 2019—is open to municipal, city and provincial governments of palay-producing provinces. Aside from loans for palay procurement, eligible LGUs may also use the fund to acquire farm machineries and post-harvest facilities, as well as finance other rice-related activities. As of September 23, 2020, LANDBANK has approved loans for the Provincial Government of Nueva Ecija, City Government of Cabanatuan City in Nueva Ecija, Provincial Government of Isabela, Municipal Government of Alicia in Isabela, Provincial Government of Tarlac, and Provincial Government of Camarines Sur. “We are encouraging our LGUs to avail of the LANDBANK PALAY ng Lalawigan Lending Program to bankroll their direct engagement in the local rice industry value chain. It will be a big help to our local farmers whose incomes may have been affected, in one way or another, by the fluctuating farmgate prices of palay,” said LANDBANK President and CEO Cecilia C. Borromeo. The fund facility is LANDBANK’s answer to the government’s call to prop up the livelihood of rice farmers heavily affected by the seasonality of palay planting. Rather than sell to unscrupulous rice traders who offer very low prices, farmers can now sell their produce to the LGUs. The loanable amount of qualified LGUs under the PALAY ng Lalawigan Lending Program shall be based on the requirement of the project but shall not be more than the Net Borrowing Capacity (NBC) of the LGU per Bureau of Local Government Finance (BLGF) computation/certification. Short-term loan line and permanent working capital under the program bear a fixed interest rate of 2% per annum until December 31, 2022. Term loan, on the other hand, carries an interest rate of 4% per annum until the same period, and subject to re-pricing afterward. For more information about the LANDBANK PALAY ng Lalawigan Lending Program, interested LGUs may contact the nearest open LANDBANK Lending Center or Branch nationwide, or call LANDBANK’s customer service hotline at (02) 8-405-7000 or at PLDT Domestic Toll Free 1-800-10-405-7000.
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DOTr, LANDBANK to roll out 6 transport modernization programs
The Department of Transportation (DOTr), alongside its attached agencies, the Land Transportation and Franchising and Regulatory Board (LTFRB) and the Philippine National Railways (PNR), will roll out with the Land Bank of the Philippines (LANDBANK) six (6) programs designed to modernize the country’s transportation systems and services. The programs are the North-South Commuter Railway Extension (NSCR-Ex) Appraisal Project, Resettlement Action Plan Entitlements Distribution Mechanism, Distribution of Cash Subsidy for Operators, Automatic Fare Collection System–Pilot Production Testing, Support Package for Environment-friendly and Efficiently-Driven PUV (SPEED PUV) Program, and the Interim Rehabilitation Support to Cushion Unfavorably-affected Enterprises by COVID-19 for Better Urban Services (I-RESCUE BUS) Transport Lending Program. The collaboration was formalized through a virtual Memorandum of Agreement (MOA) signing ceremony led by DOTr Secretary Arthur Tugade, LTFRB Chairman Martin Delgra III, PNR General Manager Junn Magno, and LANDBANK President and CEO Cecilia Borromeo held on October 12, 2020. “LANDBANK welcomes the opportunity to contribute to the continuous development of our transportation systems, in line with providing commuters with more efficient, safe, and comfortable modes of transport. Our combined efforts will fast-track the delivery of much-needed programs and services for the sector amid the ongoing pandemic,” LANDBANK President Borromeo said. As part of the partnership, LANDBANK will appraise properties that will be affected by the construction of the NSCR-Ex Project, which aims to expand the existing mass transportation in Metropolitan Manila and adjacent areas, and alleviate serious traffic congestions in and around the capital city. The appraisal will cover 15 clustered sites, composed of five (5) sites in Bulacan and Pampanga, and 10 sites in Manila, Makati and Laguna. Under the NSCR-Ex Project, LANDBANK will also serve as the distribution agent of the Resettlement Action Plan Entitlements Distribution Mechanism. The Bank will deliver cash entitlements to eligible residents and other Project-Affected Persons (PAPs) living along the railway right-of-way from Malolos in Bulacan to Clark in Pampanga, as well as from Tutuban in Manila to Calamba in Laguna. In coordination with the LTFRB, LANDBANK will distribute cash subsidy to PUV operators who have been adversely affected by the suspension in public transportation operations and reduced ridership due to COVID-19 safety protocols. The Bank will facilitate the cash release through the Pantawid Pasada Program (PPP) fuel cash cards, existing LANDBANK accounts, other bank accounts via InstaPay or PESONet, and over-the-counter payouts. The DOTr and LANDBANK will also jointly conduct the Pilot Production Testing of the Automatic Fare Collection System (AFCS), which will utilize convenient Mastercard EMVCo-compliant contactless cards as payment instruments in public transport modes. The testing will verify the entire AFCS under a real-time operating condition in preparation for its full and commercial implementation. Finally, a MOA was formalized to ensure that the plans, procedures, and rules of LANDBANK’s transport lending programs—the SPEED PUV Lending Program and IRESCUE BUS Transport Lending Program—are aligned with the DOTr’s Public Utility Vehicle Modernization Program (PUVMP). The SPEED PUV Program offers financing to public transport cooperatives or corporations to help them make the shift to more efficient and safer vehicles. As of August 31, 2020, LANDBANK has approved a total of P737.21 million in loans to 16 borrowers nationwide for the purchase of 407 modern jeepneys. Meanwhile, LANDBANK has allotted an initial P3 billion for the recently launched IRESCUE BUS Transport Lending Program to support public transport cooperatives and corporations, who are members of the consortium selected for the Metro Manila Bus Modernization Program, for the purchase of modern public utility buses. Qualified enterprises may borrow up to eighty percent (80%) of the acquisition cost of the vehicle, at an affordable fixed interest rate of 5% per annum for the first three (3) years—payable up to a maximum of seven (7) years, inclusive of the two-year grace period on principal. Interested borrowers may contact the nearest open LANDBANK Lending Center or Branch nationwide, or call LANDBANK’s customer service hotline at (02) 8-405-7000 or at PLDT Domestic Toll Free 1-800-10-405-7000.
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LANDBANK hikes fund facility for LGU recovery efforts to P20 billion
LANDBANK recently increased to P20 billion the fund available for local government units (LGU) to help revitalize their economies affected by the lockdowns imposed against the Covid-19 pandemic. The state-owned Bank’s RISE UP LGUs (Restoration and Invigoration package for a Self-sufficient Economy towards UPgrowth for LGUs) Lending Program—launched in July this year— was provided an initial fund of P10 billion to support provincial, city and municipal LGUs in the implementation of their local economic recovery plans. “LANDBANK has long established a solid partnership with the LGU sector, and we recognize their critical role as a catalyst in bringing sustainable development in their respective localities. Now more than ever, let me underscore our continued commitment to support all LGUs in revitalizing the local economy one town, one city, and one province at a time,” said LANDBANK President and CEO Cecilia C. Borromeo. In a virtual program of the Union of Local Authorities of the Philippines (ULAP) entitled, “#FORWARD Strategy Dialogue Series on Rekindling Local Economic Growth,” Borromeo shared that LANDBANK is gearing up to finance more LGU projects with lower interest rates. As of October 2, P4.37 billion in loans have been approved for 25 LGUs, while another P17.6 billion for 34 LGUs are currently being processed for approval under the RISE UP LGUs Program. The facility has a fixed interest rate of 4 percent per annum until December 31, 2022. In terms of total loans to the LGUs, Borromeo said that as of September 15, 2020, outstanding loans have reached P51.5 billion, covering 43 provinces, 81 cities, and 502 municipalities. Under Republic Act 11494 or the “Bayanihan to Recover as One Act,” the Bank has also been allotted a P1-billion interest subsidy for new and existing loans secured by LGUs. Hosted by ULAP National President and Governor Dakila Carlo E. Cua, the virtual program forms part of the dialogue series focused on “putting fiscal order in place for local economic recovery.” Featured resource speakers included Department of Finance (DoF) Secretary Carlos G. Dominguez III, Department of the Interior and Local Government (DILG) Undersecretary Epimaco V. Densing III, DoF Assistant Secretary Antonio G. Lambino II, Bureau of Local Government Finance (DOF-BLGF) Executive Director Niño B. Alvina, and Development Bank of the Philippines (DBP) President and CEO Emmanuel G. Herbosa. In addition to providing financing, LANDBANK also serves the growing needs of LGUs for more accessible, safe, and convenient electronic banking channels. As of August, a total of P219.3 million in Real Property Taxes, Real Estate Taxes, and business permit payments from 110 LGUs were collected and facilitated through the LANDBANK Electronic Payment Portal and Express Payment System. As a depository bank, LANDBANK is serving all 146 cities and 81 provinces in the country. For more updates, please Follow, Like and Share the official LANDBANK Facebook, Instagram and YouTube accounts (@landbankofficial), Twitter (@LBP_Official), or visit the LANDBANK website (www.landbank.com).
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LANDBANK loans to co-ops reach P20B; vows continued support
State-run Land Bank of the Philippines (LANDBANK) has extended a total of P20.86 billion in outstanding loans to 1,081 cooperatives and farmers’ associations as of end-August, as it expressed its continued commitment to support the role of local co-ops in getting communities and the economy back on its feet amid the ongoing COVID-19 pandemic. During the virtual celebration for Cooperative Month this October at the House of Representatives on Monday (October 5), with the theme, “Koop Kalinga sa Pandemya," LANDBANK President and CEO Cecilia C. Borromeo assured cooperatives of readily available credit facilities with low interest rates to finance recovery projects and initiatives. The virtual event was hosted by the House Committee on Cooperatives Development, which is headed by Coop-NATCCO party-list Rep. Sabiniano Canama. “As your long-time partner in growth, we in LANDBANK reaffirm our unwavering commitment and solidarity to the noble objectives of the cooperative sector. We recognize the important role of co-ops in helping revive the local economy, with your presence in communities, especially in the countryside,” said President Borromeo. As of August 2020, LANDBANK said outstanding loans to the agriculture sector reached P224.66 billion, of which P20.86 billion was extended to farmers’ co-ops. This amount includes P428 million in loans provided to cooperatives under the Agricultural Competitiveness Enhancement Fund (ACEF) and the Expanded Rice Credit Assistance under the Rice Competitiveness Enhancement Fund (ERCA-RCEF) administered with the Department of Agriculture (DA), as well as the Socialized Credit Program under the Sugarcane Industry Development Act (SCP-SIDA) in partnership with the Sugar Regulatory Administration (SRA). The LANDBANK-managed ACEF aims to increase productivity of farmers and fishers by providing the necessary credit to farmers and fishers and their cooperatives and associations, and micro and small-scale enterprises, for the acquisition and establishment of production, postharvest, and processing machineries, equipment and facilities, farm inputs and improvement. A maximum of P5 million can be availed by farmer and fishers cooperatives, associations, and micro and small enterprises. The RCEF is mandated under the Rice Tariffication Law or Republic Act 11203 with a total of P10 billion to be allotted annually and will be incorporated under the General Appropriations Act to be used in boosting the agricultural productivity in the country and help the lives of farmers. Of this annual amount, P1 billion (P500 M per year for 2 years now) is allocated for credit which is being administered by LANDBANK. Meanwhile SCP-SIDA is funded by 15 percent (or about P300 million) of the annual P2-billion fund allocated for the development of the country’s sugar industry. President Borromeo said LANDBANK supports the government’s move to promote cooperatives and farmers’ associations—particularly those involved in the farming sector—as a means to achieve economies of scale and efficiency. Alongside extending loans, LANDBANK will also be providing financial literacy trainings to 220 micro and small co-ops from 92 unbanked municipalities under the FIT-Coop Program. Together with the Cooperative Development Authority (CDA), the program is designed to help improve the business operations and strengthen the capacity of cooperatives to access formal credit. Meanwhile, under the Bank’s SPEED PUV (Special Package for Environment-Friendly and Efficiently-Driven Public Utility Vehicles) Loan Program—which is implemented in partnership with the Department of Transportation (DOTr) and the Land Transportation Franchising and Regulatory Board (LTFRB)—LANDBANK continues to accept and process loan applications from transport cooperatives. As of August this year, total loans approved for transport cooperatives reached P356 million for the acquisition of 197 modern units. Last April, LANDBANK also launched the I-RESCUE (Interim REhabilitation Support to Cushion Unfavorably-affected Enterprises by Covid-19) Lending Program for cooperatives that offers additional credit and loan restructuring under more flexible terms and conditions. “Once again, rest assured that LANDBANK stands shoulder to shoulder with you–our partners in cooperativism. Together, let us work our way to a new normal that promotes greater cooperation, resilience and sustained economic growth for one and all,” President Borromeo added. Interested borrowers may contact the nearest open LANDBANK Lending Center or Branch nationwide, or call LANDBANK’s customer service hotline at (02) 8-405-7000 or at PLDT Domestic Toll Free 1-800-10-405-7000.
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Former OFW turns to LANDBANK for a ‘refreshing’ start
Annie Suela, a watermelon farmer from Sibalom, Antique, availed of LANDBANK’s Agricultural Competitiveness Enhancement Fund (ACEF) loan program in 2019 to finance her watermelon production. With the existing quarantine protocols due to COVID-19, Suela once again relied on LANDBANK’s assistance to cushion the effect of the pandemic on her livelihood. SIBALOM, Antique – The strict quarantine imposed by the government due to the Covid-19 pandemic played a key role in a former overseas worker’s “refreshed” source of income. Just like everybody who became unsure of how things will turn out as a result of the lockdowns, watermelon farmer Annie Suela found herself in a predicament as to how she and her two children will survive. But thanks to Land Bank of the Philippines (LANDBANK), her two-hectare watermelon farm managed to survive despite the COVID-19 lockdowns. A former Overseas Filipino Worker (OFW) in Hong Kong, Suela heard over the radio about LANDBANK’s offer of low interest rates and simpler requirements for small farmers. “In December 2019, Ms. Suela was granted a credit line under the Agricultural Competitiveness Enhancement Fund (ACEF) loan program to finance the needs of her watermelon production. This also led to job generation for farm workers in their area who help prepare and till their farm,” said LANDBANK Iloilo Lending Center Head Inocentes Y. Ypanto, Jr. The ACEF fund facility, administered by LANDBANK, allows micro and small enterprises, farmers’ and fishers’ cooperatives and associations, as well as individual farmers to borrow up to 95 percent of total project cost. The funds can be used to purchase farm input and equipment or acquire/establish agri-based production and processing machineries, equipment and facilities. Suela recounted that she had a hard time keeping her watermelon farm afloat. With the limited transportation in the province resulting from the lockdown, Suela’s programmed deliveries to Manila and Boracay were disrupted. “Grabe yung experience namin dahil sa lockdown. Kahit ang dami naming pananim na watermelon, wala kaming kinikita dahil wala talagang bumibili at walang bumi-byahe sa mga terminal. (We experienced difficulties because of the lockdown. Nobody wants to buy our watermelon and any means of transporting our produce to the markets practically stopped),” Suela said. But these challenges did not break her spirit. Even with the lower profit and logistics issues, she continued to look for ways to sell her watermelons. On top of that, she also ensured that her outstanding balance with LANDBANK were paid in full to be eligible for a re-loan that she has been eyeing even before the pandemic. “Kahit na pandemic, sinikap ko talaga na makapagbayad kasi gusto ko mapanatili yung credit line ko sa LANDBANK para sa farm namin. Nag-focus kami sa pagbebenta ng mga vegetable para mabayaran yung balance namin. (Despite the pandemic, I tried my best to pay our loan obligation so I can maintain our credit line with LANDBANK. We focused on selling vegetables instead),” Suela explained. For Suela, ACEF was a welcome development for their financial needs compared to the usual unfair terms of illegal moneylenders. She is also is thankful for taking the leap with LANDBANK as it served as her safety net, especially during the strict lockdown period. “Malaki ang pasasalamat ko sa LANDBANK kasi ang bilis din ma-approve ng re-loan ko kahit may pandemic. Within four days, na-credit na agad sa account ko yung loan kaya may pang-capital na ulit kami. Kung wala ang LANDBANK, hindi ko na alam kung saan kami kukuha ng pangsimula ulit. Madali silang kausap at laging handang tumulong sa katulad kong small farmer. (I am thankful to LANDBANK because despite the pandemic, our re-loan was approved immediately. The loan amount that will be used for capital was credited to our account in just four days. I wouldn’t know where to get the funds to restart operations without LANDBANK. They are always willing to help small farmers like me),” Suela said. Suela and her family are slowly getting back on their feet as quarantine protocols nationwide are relaxed. Aside from the loan she availed from LANDBANK, she is also grateful for the financial literacy workshops and the technical trainings she received from the Bank and the Department of Agriculture to help her better manage the farm. She is also aiming for higher goals. Suela said she is interested in another loan program that will help her mechanize her farm and increase productivity of both the watermelon and vegetable farms. Interested borrowers of the LANDBANK ACEF loan program may contact the nearest open LANDBANK Lending Center or Branch nationwide, or call LANDBANK’s customer service hotline at (02) 8-405-7000 or at PLDT Domestic Toll Free 1-800-10-405-7000.
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LANDBANK extends P737M in loans for purchase of modern jeepneys
The Land Bank of the Philippines (LANDBANK) continues to support the government program to put in new and safer public utility jeepneys (PUJs) on the street. As of August 31, 2020, LANDBANK has approved a total of P737.21 million in loans to 16 borrowers nationwide for the purchase of 407 modern jeepneys under the SPEED PUV SPEED PUV (Special Package for Environment-Friendly and Efficiently-Driven Public Utility Vehicles) Loan Program. Launched in March 2019, the LANDBANK facility offers financing to public transport cooperatives or corporations to help them make the shift to more efficient and safer vehicles. This is in connection with the Public Utility Vehicles Modernization Program (PUVMP), spearheaded by the Department of Transportation (DOTr) and the Land Transportation Franchising and Regulatory Board (LTFRB), with the goal of making the country's public transportation system efficient boost passenger safety and prevent pollution by imposing an age limit for transport vehicles that allowed to operate. “The SPEED PUV Program is geared towards supporting our jeepney operators with accessible and affordable financing to purchase modernized jeepneys. Together with the DOTr and LTFRB, LANDBANK is committed to the improvement of the country's transport system and the convenient and safe mobility of the riding public,” said LANDBANK President and CEO Cecilia C. Borromeo. Modern jeepneys currently cost around P2.2 and P2.4 million. Unlike the clunky and noisy jeepneys, these are equipped with safety and convenient features such as curb-side passenger entrance and exit access, air-conditioning, closed-circuit television (CCTV) systems, and Global Positioning System (GPS), among others. LANDBANK’s SPEED PUV Program allows borrowers to loan up to ninety-five percent (95%) of the total acquisition cost of the PUJ, at an affordable interest rate of six percent (6%) per annum and payable up to a maximum of seven (7) years. LANDBANK is also offering a similar program for bus operators. The government bank recently launched a P3-billion program for the purchase of modern public utility buses, in support of the Metro Manila Bus Modernization Program of the DOTr-LTFRB. The loan facility is being offered through the Bank’s I-RESCUE for BUS Transport (Interim REhabilitation Support to Cushion Unfavorably-affected Enterprises by Covid-19 for Better Urban Services Transport) Lending Program. Interested borrowers may contact the nearest open LANDBANK Lending Center or Branch nationwide, or call LANDBANK’s customer service hotline at (02) 8-405-7000 or at PLDT Domestic Toll Free 1-800-10-405-7000.
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Rubber tree farmers in Zamboanga Sibugay ‘bounce back’ during the pandemic
Goodyear Agrarian Reform Beneficiaries Multi-Purpose Cooperative (GARBEMCO) and Land Bank of the Philippines (LANDBANK) have been partners for rubber production in Zamboanga Sibugay since 1995, which helped sustain the co-op’s operations despite the ongoing COVID-19 pandemic, through business diversification. KABASALAN, Zamboanga Sibugay – For the past 28 years, Goodyear Agrarian Reform Beneficiaries Multi-Purpose Cooperative (GARBEMCO) has relied mainly on their 1000-hectare rubber and intercropped plantation to generate income for their 312 members who are Agrarian Reform Beneficiaries (ARBs). But the COVID-19 crisis early this year dealt their rubber trading business with a heavy blow. “GARBEMCO’s rubber trading halted during the pandemic. There were no traders, and manufacturing plants stopped operating. So the co-op had to focus on its other businesses to ensure income for its members,” said LANDBANK Zamboanga del Sur Lending Center Head Engr. Joselito S. Año. Determined to stay afloat, the co-op turned to palay production and trading, and the operation of their consumer store and fishpond, among other businesses, which it already established early on through financial assistance from Land Bank of the Philippines (LANDBANK). “Ang inspirasyon talaga namin para magpatuloy sa operasyon kahit na may pandemic ay yung aming pamilya at yung pamilyang nabuo namin sa co-op. Kaya nag-bayanihan talaga kami para lang masigurado na tuloy ang pinagkakakitaan at kabuhayan ng mga miyembro namin,” said GARBEMCO General Manager Lilia Manuel. LANDBANK and GARBEMCO’s partnership started in 1995 when the co-op availed of the Bank’s Agricultural Production Loan (APL) and Short Term Loan (STL) for the capital of their rubber production, and later on used it to diversify its businesses. “Ang laking tulong ng LANDBANK sa paglaki ng GARBEMCO. At marami pa kaming mga proyekto sa coop na gusto namin i-develop sa tulong pa rin ng LANDBANK, gaya ng agri-tourism through a hot spring resort,” GM Manuel added. With the relaxing quarantine restrictions in the province, GARBEMCO is now starting to engage anew in rubber trading. The harvests that they stored in their warehouse for the last 5 months, totaling to some 350 tons of rubber, are gradually becoming profitable again for their ARB members. LANDBANK remains steadfast in providing accessible financial channels to ARBs. As of June 2020, cumulative loan releases of two lending programs for ARBs and small farmers have already reached P583.35 million, under the Bank’s E-ARISE-ARBs (Expanded Assistance to Restore and Install Sustainable Enterprises for Agrarian Reform Beneficiaries and Small Farm Holders) loan program, and the CAP-PBD (Credit Assistance Program for Program Beneficiaries Development) Window III Program Extension. For more information about LANDBANK’s Lending Programs, interested borrowers may contact the nearest open LANDBANK Lending Center or Branch nationwide, or call LANDBANK’s customer service hotline at (02) 8-405-7000 or at PLDT Domestic Toll Free 1-800-10-405-7000.
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