Landbank Raises P50B via Sustainability Bonds

Why It Matters

By mobilizing private capital for green and social initiatives, Landbank demonstrates how state‑owned banks can catalyze sustainable development in the Philippines, while expanding financial inclusion through digital channels.

Key Takeaways

• Landbank raised P50B via ASENSO sustainability bonds.
• Issuance exceeded P30B target, closed early.
• 7,000 investors participated across 1.5‑ and 3‑year tenors.
• Bonds purchasable via mobile app with P10,000 minimum.
• Proceeds fund renewable energy, green buildings, and social projects.

Pulse Analysis

The Philippines’ sustainable finance landscape received a significant boost when Landbank issued its ASENSO bonds, a pioneering instrument that blends agricultural, environmental, and socioeconomic objectives. Raising P50 billion—well above the P30 billion target—signals strong investor appetite for climate‑aligned assets in a market traditionally dominated by conventional debt. By listing on the Philippine Dealing and Exchange Corp., the bank tapped both institutional and retail pools, reinforcing the country’s commitment to the ASEAN Green Bond Standards and the broader global transition to low‑carbon economies.

A standout feature of the issuance was its digital distribution model. For the first time, corporate sustainability bonds were sold directly through Landbank’s mobile banking platform, lowering entry barriers with a P10,000 minimum investment. This approach not only broadened participation to thousands of small investors but also showcased how state‑run banks can leverage fintech to democratize access to green finance. The rapid uptake—7,000 completed transactions—demonstrates the latent demand for retail‑friendly sustainable products and underscores the potential of mobile channels to accelerate capital flows toward climate solutions.

Looking ahead, the successful ASENSO bond sale sets a precedent for future green financing initiatives across the region. The earmarked proceeds for renewable energy, energy efficiency, clean transport, and social development align with the Philippines’ Nationally Determined Contributions under the Paris Agreement, offering a tangible pathway to meet emission reduction targets. As more issuers adopt similar structures, the market is likely to see increased issuance volumes, diversified tenors, and deeper integration of ESG criteria into mainstream borrowing, positioning the Philippines as a regional leader in sustainable capital markets.

Deal Summary

State‑owned Land Bank of the Philippines raised P50 billion through its ASENSO sustainability bonds, which were listed on the Philippine Dealing and Exchange Corp. on Feb 16, exceeding the P30 billion target and closing early. The proceeds will fund renewable energy, green buildings, clean transport, and other environmental and social projects across the country.