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Business

Landbank chips in P10.42 billion for COVID-19 use

Elijah Felice Rosales - The Philippine Star
Landbank chips in P10.42 billion for COVID-19 use
Landbank yesterday reported that it contributed nearly 13 percent of the $1.593 billion in RDBs raised by the government from Sept. 15 to Oct. 1.
STAR / File

MANILA, Philippines — State-run Land Bank of the Philippines has issued $205.27 million (around P10.42 billion) in Retail Dollar Bonds (RDBs) to bolster the government’s resources in managing the pandemic.

Landbank yesterday reported that it contributed nearly 13 percent of the $1.593 billion in RDBs raised by the government from Sept. 15 to Oct. 1.

It said $95 million worth of its RDBs were sold during the price setting on Sept. 15, accounting for more than 10 percent of the aggregate $866.2 million maiden sale.

Landbank issued another $109.94 million and $329,700 through its over-the-counter option and digital channels, respectively. The bank raised $203,500 of its digital issuance via the mobile application of its subsidiary Overseas Filipino Bank, catering mostly to overseas Filipino workers (OFWs) with dollar accounts.

Further, the state-owned bank transacted $107,800 in RDBs through its own mobile application. The remaining $18,400 was facilitated by the Bureau of the Treasury’s online ordering facility at Landbank’s Link.BizPortal, its payment platform.

Landbank president and CEO Cecilia Borromeo said proceeds from the RDBs would be deployed to finance government efforts to complete its infrastructure projects and improve health services in a bid to recover from the pandemic.

Further, Borromeo said the volume attracted by the RDBs showed interest among OFWs to lend to the government by purchasing its debt papers.

“A significant draw to the RDB offering was the availability of various investment channels that providezZd greater convenience and accessibility to retail investors worldwide,” Borromeo said.

The Treasury has borrowed $1.593 billion or around P81 billion, mostly from OFWs through the issuance of RDBs. The amount exceeded by nearly four times the agency’s goal of raising $400 million through the offering.

During the rate setting, the five-year RDBs fetched a coupon of 1.375 percent, while the 10-year RDBs quoted a coupon 2.25 percent. The securities received tenders from investors in at least 30 countries, including the Cayman Islands, Cyprus and Papua New Guinea.

Landbank served as the joint lead issue manager for the RDB issuance as it raises cash that can be used to fund response measures against the pandemic.

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