In fulfillment of its social mandate of promoting countryside development, the Land Bank of the Philippines (LANDBANK) posted a total of P713.8 billion in outstanding loans directed to agriculture and rural development as of 30 June 2023.
The P713.8 billion represents 69% of LANDBANK's total loan portfolio of P1.04 trillion, which is close to three times the 25% requirement for local banks to allocate financing for agriculture, fisheries and rural development (AFRD) under Republic Act No. 11901 or “The Agriculture, Fisheries and Rural Development Financing Enhancement Act of 2022.”
Under the new law, AFRD financing is defined as loans and investments to finance activities that shall enhance productivity and increase income of an agricultural and fisheries household, thereby promoting productivity and competitiveness in the agricultural sector, as well as sustainable development of rural communities.
"LANDBANK remains steadfast in fulfilling its primary development mandate to advance the country’s agricultural sector. With a holistic approach covering all players in the value chain, we will continue to extend accessible and responsive financing to ramp-up agriculture modernization and productivity, paving the way for more resilient local communities," said LANDBANK President and CEO Lynette V. Ortiz.
LANDBANK’s computation follows the new AFRD law and its implementing rules and regulations (IRR) recently issued by the Bangko Sentral ng Pilipinas (BSP).
Of the P713.8 billion in outstanding loans, LANDBANK dedicated P107.8 billion to agriculture and fisheries production, which includes funding for the processing of fisheries and agri-based products and farm inputs.
To help fast-track agri modernization, the Bank channeled P70.4 billion for the digitalization and automation of farming, fishery, and agri-business activities and processes, including related financial and management information systems.
LANDBANK also provided P78.5 million for agri-tourism projects, which involve attracting visitors and tourists to farm areas for production, educational and recreational purposes.
A significant portion of the AFRD loans totaling P244.1 billion ramped-up public rural infrastructure development, covering highways, streets, bridges, transport systems, irrigation, public markets, slaughterhouses, warehouses, solid waste management, flood control, drainage, and other essential infrastructure and development projects.
Meanwhile, another P167 billion backed sustainable projects that provide lasting benefit for both clients and society while reducing pressures on the environment. This also covers green finance which funds climate change mitigation and adaptation projects, among others.
The rest of the LANDBANK AFRD financing supported farm and fishery entrepreneurial activities; agricultural mechanization; agricultural and fishery commodities; essential facilities, equipment and machineries; capacity-building activities; and projects that promote the health and wellness of farmers, fishers and Agrarian Reform Beneficiaries (ARBs), including members of their households.
As the country's premier financial institution dedicated to agricultural and rural development, LANDBANK will be celebrating on 8 August 2023 its 60th anniversary of serving the nation.
LANDBANK remains financially strong, regulatory compliant
LANDBANK reaffirms its financial strength and stability, following the Bank’s P50-billion contribution to the Maharlika Investment Fund (MIF), and remains fully committed to its mandate as a reliable partner to the national government’s inclusive development agenda. The state-run Bank has consistently met and exceeded the minimum requirements of the Bangko Sentral ng Pilipinas (BSP) for Capital Adequacy Ratio (CAR)—a critical benchmark of financial health—as it stays financially robust with no urgent need for additional capital. Earlier this year, LANDBANK remitted P32.119 billion in cash dividends to the National Government—the highest among all Government Owned and Controlled Corporations (GOCCs) and in the Bank’s history. This milestone reflects the Bank's sustained financial strength and ability to generate consistent revenues while fulfilling its developmental mandate. As of 30 November 2024, LANDBANK’s CAR remains at a healthy level of 16.42% which is well above the 10% regulatory threshold, further demonstrating the Bank’s resilience against financial and operational risks. Following the P50-billion seed capital allocation to the MIF in September 2023, LANDBANK’s CAR stood at 16.20%, remaining comfortably above regulatory requirements and reflecting the Bank’s commitment to financial stability. The Bank also clarified that regulatory relief was sought from the BSP as a proactive measure to maintain resilience. LANDBANK has consistently adhered to prudent financial management practices, effectively utilizing its resources to promote agriculture, fisheries and rural development, and empower key development sectors. ABOUT LANDBANK LANDBANK is the largest development financial institution in the Philippines promoting financial inclusion, digital transformation, and sustainable national development. Present in all 82 provinces in the country, the Bank is committed to provide accessible and responsive financial solutions to empower Filipinos from countryside to countrywide.
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From ‘Ad Man’ to ‘Mushroom Man’: Farmer cultivates success with LANDBANK’s support
Roderick Capalongan left his career in advertising in 2014 to venture into mushroom farming, and is now a leading supplier of mushrooms in his home town of Solano, Nueva Vizcaya, including Manila, Isabela, Cagayan Valley, Tarlac, and Pampanga. SOLANO, Nueva Vizcaya – Roderick Capalongan built a dynamic career in advertising, mastering project management, below-the-line communications, and complex campaign operations. But what started as a side hustle soon turned into his true passion—mushroom farming. Inspired by a fellow farming enthusiast, Roderick initially ventured into mushroom production to generate extra income for his family. However, what began as a small project soon became his full-time calling. In 2014, he left advertising behind to grow mushrooms on a 2-hectare farmland he inherited from his grandfather. Roderick named his own farm “Mushroom Man” and used recycled agricultural waste, such as rice straw, as substrate to grow oyster mushrooms. As demand grew, so did Roderick’s desire to scale up the business. In 2016, he found a reliable partner in Land Bank of the Philippines (LANDBANK) which stepped in with an initial loan of P300,000.00, giving Roderick the boost he needed to expand his operations. “Salamat sa LANDBANK dahil palagi silang handang sumuporta sa akin at sa projects ko. Sa tulong nila, nakapagpatayo ako ng facilities at nakapag-expand ng farm ko,” said Roderick. Over the years, LANDBANK has extended a total of P6.25 million to support Roderick’s mushroom production, which covered the purchase of equipment and the construction of mushroom housing, and even the expansion to tilapia and catfish production. The Mushroom Man currently delivers fresh produce daily to market outlets in Nueva Vizcaya and Manila, as well as in the provinces of Isabela, Tarlac, Pampanga, Cavite and Cagayan Valley. Innovation meets sustainability Roderick adopted an integrated farming business model that combines mushroom production with tilapia fish farming to minimize farm waste, reduce operational costs, and promote resource efficiency. One of his sustainable farm methods involve recycling mushroom spent—a byproduct of his mushroom production—to cultivate duckweeds as an alternative to artificial commercial fish feeds. This recycling practice reduced the cost of his tilapia production by half and significantly increased his profits. “Sa panahon ngayon, tumataas na ang presyo ng farm inputs, tulad ng tilapia feeds. Kaya kailangan maging resourceful para gumanda ang kita,” said Roderick. During the COVID-19 pandemic, Roderick also expanded his product line to include processed mushroom products, which include siomai, crispy mushroom, mushroom spread, and chili paste, alongside organic fertilizers. Roderick adopted an integrated farming business model that combines mushroom production with tilapia fish farming, wherein he uses discarded mushroom spent to produce duckweeds which serves as a natural alternative to fish feeds. A trailblazer in mushroom and integrated farming In recognition of his innovative practices and contributions to the local mushroom industry, LANDBANK conferred to Roderick the “Ulirang Magsasaka – Special Award for Integrated Farming” at the Bank’s Models of Excellence Recognition Initiative for Top Bank Clients (MERIT) Awards. Roderick and his wife, Sheila Capalongan, receive the special citation for integrated farming during the LANDBANK MERIT Awards in Malate, Manila. Roderick and his wife, Sheila Capalongan, receive the special citation for integrated farming during the LANDBANK MERIT Awards in Malate, Manila. The MERIT Awards celebrated the Bank’s top development partners in the delivery of essential financial and support services in local communities nationwide. Roderick’s farm has become the model mushroom farm in Nueva Vizcaya, attracting local and foreign visitors, including students, cooperatives and associations, to learn from his expertise about mushroom and integrated farming. National agencies like Department of Science and Technology (DOST), Department of Agriculture (DA), Department of Agrarian Reform (DAR), and state universities also work closely with the farm to promote sustainable farming practices and enhance agricultural education. Looking ahead, Roderick plans to build a farm school to train aspiring agri-entrepreneurs in mushroom production and elevate Nueva Vizcaya as a hub for oyster mushroom production. He likewise plans to train abroad to refine his skills and learn best global practices to help boost the local industry. “We are planning to train sa ibang bansa para mag-uwi ng advanced technology at matuto ng modern practices for mushroom production. Naniniwala ako na kaya natin magkaroon ng globally competitive mushroom industry,” said Roderick. A Journey from Campaigns to Cultivation Roderick Capalongan’s journey from the advertising world to agriculture is a testament to his adaptability to embrace change and passion to pursue his calling. With LANDBANK as his trusted partner, he continues to thrive—proving that success grows where passion and innovation meet. Through partnerships like these, LANDBANK is empowering farmers and Filipinos nationwide for a better future. About LANDBANK LANDBANK is the largest development financial institution in the Philippines with the largest portfolio in support of agriculture, fisheries, and rural development. Promoting financial inclusion, digital transformation, and sustainable national development, the Bank is present in all 82 provinces in the county and is committed to provide accessible and responsive financial solutions to empower Filipinos from countryside to countrywide.
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LANDBANK leads P110-B syndicated loan to fuel the local power sector
PSALM President and CEO Dennis Edward A. Dela Serna (2nd from right), LANDBANK President and CEO Lynette V. Ortiz (rightmost), and DBP President and CEO Michael O. de Jesus (3rd from right) lead the ceremonial signing for the P110-billion syndicated loan for PSALM on 30 July 2024 in Quezon City, witnessed by Assistant Government Corporate Counsel Judge Basilia Serrano-Angeles (leftmost). Land Bank of the Philippines (LANDBANK) has extended the majority of the P110-billion syndicated loan facility to state-owned Power Sector Assets and Liabilities Management (PSALM) Corporation in support of strengthening and enhancing the competitiveness of the country’s local power industry. LANDBANK committed to financing P60 billion of the total facility amount. The proceeds will be used by PSALM to augment its working capital requirements, refinance existing liabilities, and settle domestic contractual obligations. “LANDBANK has a long-standing history of supporting the National Government’s electrification initiatives, with our loan portfolio encompassing a wide range of energy-related projects. We will continue to support PSALM in addressing the energy needs of the country today and in the future,” said LANDBANK President and CEO Lynette V. Ortiz. PSALM President and CEO Dennis Edward A. Dela Serna, together with LANDBANK President and CEO Ortiz and Development Bank of the Philippines (DBP) President and CEO Michael O. de Jesus, led the ceremonial signing for the Php 110.0 billion syndicated term loan facility agreement on 30 July 2024 in Quezon City. Assistant Government Corporate Counsel Judge Basilia Serrano-Angeles witnessed the event. “We express our heartfelt gratitude to LANDBANK, DBP and OGCC for their continued support in attaining PSALM’s financial objectives. PSALM’s liability management program has presented significant challenges as we strive to fulfill our mandate of liquidating the financial obligations we have assumed. This syndicated loan provides additional financial support to PSALM, ensuring our continued progress and assist our asset management and privatization strategies,” said PSALM President and CEO Dela Serna. “With this loan, we are projecting a net reduction of PHP12.9 billion in our financial obligations for CY 2024,” he added. LANDBANK and DBP acted as the Joint Lead Arrangers for the syndicated deal, with the DBP - Trust Banking Group as the Facility and Paying Agent, and the Office of the Government Corporate Counsel (OGCC) as the Transaction Counsel. PSALM is a wholly-owned and controlled government entity mandated under the Electric Power Industry Reform Act (EPIRA) to take over the ownership of all existing generation assets of the National Power Corporation (NPC), independent power producer (IPP) contracts, real estate, and all other disposable assets, including the transmission business of the National Transmission Corporation (TransCo). The agency also manages the orderly sale and privatization of these assets with the objective of liquidating all of NPC's financial obligations in an optimal manner. LANDBANK has been a steadfast partner of PSALM since 2008, providing essential financing in support of its mandate under the EPIRA law. The Bank also continues to service the development requirements of the energy sector, including other industry players such as large oil companies, power producers, and distribution utilities. ABOUT LANDBANK LANDBANK is the largest development financial institution in the country promoting financial inclusion, digital transformation, and sustainable national development. Present in all 82 provinces in the county, the Bank is committed to provide accessible and responsive financial solutions to empower Filipinos from countryside to countrywide.
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