LAND BANK of the Philippines (LANDBANK) closed its bond offering on its first day following strong demand from investors.
The state-lender said in a statement on Monday that the offer period for the bonds, which was supposed to run from Oct. 26 to Nov. 6, was cut short due to “very strong demand and oversubscription.”
LANDBANK priced its maiden issue of sustainability bonds at an interest rate of 2.5872% payable quarterly. The papers have a tenor of two years.
The lender earlier said it is looking to raise at least P3 billion from the offering. It had yet to disclose the total amount raised from the bonds as of press time on Monday.
Standard Chartered Bank served as the sole lead arranger and bookrunner for the transaction. It was also a selling agent together with LANDBANK.
The bank last week said the funds raised from the transaction will be used to finance its loan programs for green and social projects.
For green projects, included are those related to climate change mitigation and adaptation, biodiversity conservation, as well as pollution control, among others, the bank said.
Meanwhile, initiatives on basic infrastructure, food security, essential services, affordable housing, and employment generation, are considered social projects.
State-owned Development Bank of the Philippines in November 2019 likewise sold P18.125 billion worth of sustainability bonds. — LWTN