Equity Infusion Program

Rationale

LANDBANK equity investment programs offered to eligible CFIS [i.e. cooperative banks (coop banks), rural banks (RBs)  and thrift banks (TBs)].

Eligible Participating Banks

  • Rural Banks
  • Cooperative Banks
  • Thrift Banks

Types of Equity Investment

  • Developmental Module
  • Business Module
  • Risk Recovery Module

Features of Equity Investment

  • Preferred shares shall be mandatorily redeemable, without provision for conversion into common shares (sinking fund has to be established for the redemption of shares), within:

   > 5 years for Business Module.

   > 10 years for the Developmental and Risk Recovery Modules.

  • Cumulative;
  • Non-voting;
  • Preference in assets in case of liquidation;
  • Upon redemption, shares shall be valued at par plus all earned but unpaid dividends, if any;
  • Entitled to one seat in the bank’s  board.

Dividend Rate

Prevailing LBP rate at the time of availment.