As part of measures to help communities bounce back from the impact of the COVID-19 pandemic, the national government, through state-run Land Bank of the Philippines (LANDBANK), is providing an interest rate subsidy of 2% per annum on new and existing loans of Local Government Units (LGUs) for their response and recovery intervention projects for their constituents.
The interest subsidy forms part of the provisions of Republic Act No. 11494 otherwise known as the “Bayanihan to Recover as One (BARO) Act” or “Bayanihan 2,” in which LANDBANK has been allotted a P1-billion interest subsidy fund by the national government for loans secured by LGUs.
The relief shall be applied to loan interest payments of municipal, city and provincial LGUs until December 31, 2022, or until the interest subsidy fund is fully utilized.
To extend the interest rate subsidy to as many LGUs as possible, a maximum interest subsidy equivalent to P10 million has been set for cities and provinces, and P5 million for municipalities.
“We strongly encourage our LGUs to make full use of credit facilities subsidized by the national government to bankroll development projects in their respective localities. This will contribute greatly to reviving local economies and helping the country recover from the impact of the COVID-19 pandemic,” said LANDBANK President and CEO Cecilia C. Borromeo.
Qualified LGUs may avail of the loan interest subsidy for eligible projects pursuant to the objectives of the BARO Act. These include, but are not limited to, permanent working capital such as for the purchase of agricultural produce, acquisition of equipment, construction of facilities for linking of products to the market such as market infrastructure development and improvement, mobile palengke, collection and buying stations, and other related facilities.
LGUs with loans for programs and projects that provide basic and support services, social welfare and healthcare, and other infrastructure activities that aim to bring back confidence of the people and spur the local economy and businesses are also eligible to avail of the interest subsidy.
The loan for these projects shall bear a fixed interest rate of 4% per annum until the end of 2022, wherein the remaining 2% interest rate shall be charged to the LGU. Interest rate shall be subject to annual repricing thereafter based on benchmark rate plus applicable credit spread based on credit rating of the borrower, but shall not be lower than 4% per annum.
Borrowers may pay their loan up to 15 years inclusive of up to three (3) years grace period on principal payable based on cash flow.
The interest rate subsidy will be made available to LGUs with approved accounts under LANDBANK’s RISE UP LGUs (Restoration and Invigoration package for a Self-sufficient Economy towards UPgrowth for LGUs) Lending Program which was launched last July, to support LGUs in the implementation of their local economic recovery plans.
As of November 30, 2020, LANDBANK has approved loans to 156 LGUs amounting to P52.27 billion under the RISE UP LGUs Lending Program. Of this amount, P383.5 million has been released to three (3) LGUs.
Interested borrowers may contact the nearest open LANDBANK Lending Center or Branch nationwide, or call LANDBANK’s customer service hotline at (02) 8-405-7000 or at PLDT Domestic Toll Free 1-800-10-405-7000.
Expanding financial access for small farmers: LANDBANK partners with KITA Agritech, TAO Foods to boost agri modernization
LANDBANK President and CEO Lynette V. Ortiz (2nd from right) formalizes partnerships in consecutive ceremonial signings with KITA Agritech CEO Carlos Miguel S. Concio (2nd from left, 1st photo) and TAO Foods Chairman Julio D. Sy, Jr. (2nd from the left, 2nd photo) in efforts to advance modernization of the agriculture sector in the country. Joining as witnesses are KITA Agritech Vice President Rafael Anonas (leftmost, 1st photo), TAO Foods President and CEO Atty. Laura Love P. Guevara (leftmost, 2nd photo), and LANDBANK Executive Vice President Ma. Celeste A. Burgos Land Bank of the Philippines (LANDBANK) has made strategic partnerships with KITA Agritech Corporation (KITA Agritech) and TAO Foods Company Inc. (TAO Foods) to amplify efforts in empowering small farmers with increased access to financial services and opportunities for modernization. Under the partnership, KITA Agritech and TAO Foods will provide necessary production, technical, and marketing assistance to partner farmers and farmer organizations, creating a robust framework that fosters innovation by incorporating each company's digital solutions. KITA Agritech will introduce the Digital Trading Post, which aims to improve inventory management and reduce operational farming costs associated with natural disasters and calamities. TAO Foods will introduce the Rice to Rise Program, which aims to supply farmers with one hundred percent (100%) locally produced hybrid rice seeds that can potentially increase their yield, thereby resulting in improved productivity and profitability. For its part, LANDBANK will extend to eligible partners endorsed by the two companies the AGRISENSO Lending Program, which provides affordable financing to small farmers, Agrarian Reform Beneficiaries (ARBs), and the whole agriculture value chain, aimed at bolstering nationwide food security and sufficiency. Beyond financial and technical support, these partnerships aim to empower farmers to navigate market and environmental challenges through innovative technologies and sustainable practices. This ensures their livelihoods remain productive and secure, contributing to a more resilient and self-sufficient agricultural sector. “LANDBANK is focused on making impactful partnerships in ensuring that more farmers are empowered with the tools and resources needed for them to thrive, increase productivity, and contribute to national food security. Together, we are advancing modern agriculture while driving sustainable growth and strengthening the country’s food supply chain,” said LANDBANK President and CEO Lynette V. Ortiz. In separate signing ceremonies, LANDBANK President and CEO Ortiz formalized the partnerships with KITA Agritech CEO Carlos Miguel S. Concio and TAO Foods Chairman Julio D. Sy, Jr. on 01 October 2024 at LANDBANK Plaza in Manila. They were joined by KITA Agritech Vice President Rafael Anonas, TAO Foods President and CEO Atty. Laura Love P. Guevara, and LANDBANK Executive Vice President Ma. Celeste A. Burgos as witnesses. Founded in February 2022 by CEO Concio, KITA Agritech is one of the fastest-growing agritech startups in the Philippines that helps Filipino farmers become more sustainable by leveraging technology to optimize operations, reduce costs, and increase productivity. TAO Foods, on the other hand, produces hybrid rice seeds and processed meat products, and focuses on sustainable farming and modern seed technology to enhance farmers' profitability and ability to contribute to national food security. LANDBANK launched the AGRISENSO Lending Program this year and has supported 1,671 borrowers nationwide with a total of P264.9 million in approved loans as of end-August 2024. The AGRISENSO Lending Program was first introduced at the LANDBANK “Bilis Ipon: Digital Financial Inclusion Caravan,” which aims to bring banking and financing services closer to farmers in far-flung and underserved communities. The Bank has successfully conducted the Caravans in 17 areas this year, with the latest in Himamaylan City, Negros Occidental on 31 July 2024. 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.
LEARN MORELANDBANK to boost financial services with UCPB-SB privatization
Land Bank of the Philippines (LANDBANK) is poised to intensify its focus on serving its diverse clientele of key development sectors with the privatization of UCPB Savings Bank, Inc. (UCPB-SB), allowing it to better streamline resources and facilitate more efficient capital deployment. President Ferdinand R. Marcos Jr. approved the privatization of UCPB-SB through Memorandum Order No. 28, issued on 06 August 2024. The domestic savings bank became a subsidiary of LANDBANK following its merger with the United Coconut Planters Bank (UCPB) in 2022. The privatization stems from LANDBANK’s capacity to offer similar banking services to those of UCPB-SB and is aligned with the government's broader efforts to rationalize resources and improve operational efficiency. “The privatization of UCPB Savings Bank is a strategic initiative designed to improve operational efficiency and service quality. This transition will optimize resource allocation and support LANDBANK’s mission of inclusive development, consistent with the National Government's broader efforts to streamline operations,” said LANDBANK President and CEO Lynette V. Ortiz. Aside from reducing demand on government resources while maintaining high service standards, the privatization will allow LANDBANK to better focus its resources on serving its mandated and priority sectors, in support of the country’s inclusive development agenda. With the privatization approval, LANDBANK is selling its ownership share equivalent to 97.55% of the equity of UCPB-SB to qualified private parties, subject to pertinent laws, rules and regulations. Interested buyers may contact UCPB-SB through EGSantos@ucpbsavings.com or LANDBANK Investment Banking Group via ibg@landbank.com for inquiries. Potential buyers may also access the UCPB-SB website for more detailed information. Meanwhile, LANDBANK assures UCPB-SB clients of a smooth transition with all banking services to be uninterrupted and all deposits and investments remaining safe and secure.
LEARN MORELANDBANK, SariSuki unite to empower farmers with accessible credit
[L-R] SariSuki Head of Agritech Department Joselito Lontok, Co-founder and Chief Executive Officer Brian Cu, LANDBANK President and CEO Lynette V. Ortiz, and Executive Vice President Ma. Celeste A. Burgos hold the memorandum of agreement for the AGRISENSO Lending Program partnership. Land Bank of the Philippines (LANDBANK) has partnered with SariSuki, a leading Philippine agritech startup, which aims to revolutionize the agricultural supply chain through the Bank’s AGRISENSO Lending Program. This strategic alliance aims to support over 300 small farmers and Agrarian Reform Beneficiaries (ARBs) by providing accessible financing, hands-on guidance, and a reliable market for their produce, aiming to enhance livelihoods and contribute to long-term food security. LANDBANK President and CEO Lynette V. Ortiz emphasized the partnership as a strategic move to support small farmers and boost crop production. “Through the combined networks, expertise, and resources of SariSuki and LANDBANK, we can effectively meet the financial needs of our farmers while providing crucial production, technical, and marketing assistance to enhance their productivity and income," she said. Under the partnership, SariSuki will serve as the primary buyer of farmers' produce, integral to its mission of building a vertically integrated agriculture superhighway. Brian Cu, Co-founder and CEO of SariSuki, explained, “By providing a stable market, and technical support in farming, business management, and financial literacy, we address farmers’ key challenges. Backed by LANDBANK’s financing, we aim to uplift farmers' livelihoods, ensure business sustainability, and enhance food security. For its part, LANDBANK will be extending to eligible partners endorsed by SariSuki the AGRISENSO Lending Program that provides affordable financing to small farmers, Agrarian Reform Beneficiaries (ARBs), and the whole agriculture value chain, aimed at bolstering nationwide food security and sufficiency. A key element of this partnership is SariSuki's commitment to directly pay the principal of farmers' loans to LANDBANK, allowing farmers to immediately profit from their earnings, providing financial relief, and encouraging reinvestment in their farms. The collaboration seeks to lower the cost of fresh produce by integrating SariSuki’s supply chain with an omni-channel demand network and sourcing directly from local farmers. Through these efforts, SariSuki is driving meaningful change in the agricultural sector, ensuring the abundance, accessibility, and affordability of wet market goods. The partnership also aims to expand SariSuki’s network by working with LANDBANK’s Lending Centers in key agricultural regions like Nueva Ecija, Quezon, Laguna, and Cavite welcoming new farmers while continuing to support existing members. Since the launch of the AGRISENSO Lending Program this year, LANDBANK has supported over 1,766 borrowers nationwide with P272 million in approved loans. The Program is being offered at the Bank’s “Bilis Ipon: Digital Financial Inclusion Caravan” rollouts, which has brought banking and financing services closer to farmers in 17 underserved areas nationwide, including most recently Himamaylan City, Negros Occidental. Together, LANDBANK and SariSuki are building an innovative ecosystem that integrates financial support, market access, and technical assistance to uplift farmers and strengthen the agricultural sector. This collaboration is a significant step toward transformative change, fostering a more prosperous future for farmers, broader agricultural growth, and a food-secure nation. 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. About SariSuki Sarisuki is an Agritech and ECommerce Startup that aims to improve the accessibility, affordability, and ultimately abundance of Fresh produce in the Philippines. The three year old startup is building an "Agri Super Highway" connecting farmers/producers to its multiple demand channels. SariSuki leverages the power of local communities to transform the agricultural supply chain and positively impact the lives of Filipino Ka-Sangga (farmers), Ka-Sari (community leaders/sellers), and Ka-Suki (consumers), and the larger community. Sarisuki aims to bridge the gap between these stakeholders and create a sustainable, equitable, and transparent agri-futures.
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