LANDBANK launched the ACCESS Program to pursue its social mission by initiating innovative strategies intended to contribute significantly in shaping a dynamic rural economic landscape. It continues its efforts in nurturing and transforming cooperatives, self-help groups (SHGs) and rural economic entities (REEs) into an economic force not only in the countryside but also in the global arena.
The ACCESS Program aims to catalyze countryside development by promoting livelihood and rural employment, and by priming up local agri-related and off-farm economic projects to raise productivity and income in priority areas of the country.
LANDBANK shall provide equity investment to augment the financial strength of cooperatives, SHGs, REEs or LGUs to engage in new economic ventures or expand existing economic projects through pooling of resources. The extent of partners’ participation shall be determined based on capital requirement, viability, social and economic impact of the identified economic projects.
Provision of Professional Management Team
The entity may employ/tap experts and/or Bank personnel, where necessary, to assist in project planning, implementation, and monitoring to ensure profitability and sustainability.
Technology Transfer and Marketing Assistance
To ensure operational cost-effectiveness and efficiency of the new economic entity, the Program shall promote and facilitate the transfer of appropriate technology and marketing assistance to partner organizations.
This refers to the gradual recovery of the Bank’s equity investment for over a period of time depending on the projected cash flow of the economic projects but not to exceed 15 years.
Self-Help Groups (SHGs)
Rural Economic Entities (REEs)
Local Government Units (LGUs)
Agri-related and off-farm economic projects
Located outside National Capital Region (NCR) and Metro Cebu
Financially viable and technically feasible
At least four (4) stockholders (including LANDBANK) composed of cooperatives, SHGs, REEs and/or LGUs/NGAs
The corporation shall establish a sinking fund to ensure the redemption of LANDBANK shares.
Partners should have no adverse CI/BI reports.
EXTENT OF EQUITY INVESTMENT
LBP equity investment shall neither exceed P20 Million nor 35% of the total subscribed capital stock in a single enterprise, whichever is lower, and provided further that the equity investment shall not exceed 35% of the total voting stock in that enterprise.
KINDS AND FEATURES OF LBP INVESTMENT
Investment shall be in preferred shares.
Entitled to cumulative dividends (including undeclared/unpaid dividends for prior years)
Dividend rate based on 91-day T-Bill rate determined at the end of each quarter or at a rate fixed at 12% per annum, whichever is higher.
Redemption of LBP Shares
Preferred shares shall be redeemable by the corporate at par value, book value or fair market value at the option of LANDBANK, without prejudice to the right of the Bank to sell its shares to other parties it may choose.
Divestment/redemption shall be made within a period not exceeding 15 years from the time of incorporation based on a schedule that the BOD shall formulate and on the cash flow statement.