Landbank defers bond sale to 2027

MANILA, Philippines – Land Bank of the Philippines (Landbank) has deferred a bond issuance this year and plans to return to the debt market in 2027, depending on market conditions and investor sentiment.

Speaking to reporters, Landbank President and CEO Lynette Ortiz said any future bond sale would fall under the bank’s P200-billion bond program.

“Everything is really market-driven. We are keen to go back to the market. As you know, our issue program is P200 billion,” Ortiz said.

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“But it’ll all have to be timed with the general macro-environment [and] investor sentiment. But we are keen. We will go back, it’s just timing,” she added, noting that the bank has already ruled out a bond issuance for the remainder of 2026.

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Global markets have remained volatile as the Middle East war drove oil prices higher, fueled inflation, and weakened the peso.

In February, before the war broke out, Landbank raised P50 billion through itsAgriculture, Sustainability, Environment and Socioeconomic Development (Asenso) Bonds, exceeding its P30-billion target and P5-billion minimum offer after attracting nearly 17,000 retail investors.

Landbank offered the bonds in 1.5-year and three-year tenors at annual interest rates of 5.1714 percent and 5.5615 percent, respectively.

This leaves Landbank with around P150 billion in remaining fundraising capacity under its P200-billion bond program.

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The Asenso Bonds will fund green and urban development projects, according to the January pricing supplement.

The proceeds will also fund healthcare, education, MSME financing, food security, and affordable housing.

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Landbank’s net income fell 9 percent to P12.05 billion in the first quarter, while assets edged up to P3.442 trillion.

For full-year 2025, however, the state-run lender posted a record P43.98 billion in net income, up 24 percent from 2024. Landbank remitted P32.35 billion in dividends to the government this year, the second-highest among 50 GOCCs. /pai INQ

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