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Business

Quedancor gets P2.2-B loan from Landbank, UCPB

- Rocel Felix -
The Quedan Rural Credit and Guarantee Corp. (Quedancor) is beefing up its credit facilities with a P2.2-billion loan from the Landbank of the Philippines (Landbank) and the United Coconut Planters Bank (UCPB).

Quedancor president and chief executive officer Nelson Buenaflor said the loan proceeds will go into the agency’s various loan financing programs for agri-based entrepreneurs and individual farmers and fisherfolks.

In ceremonies celebrating Quedancor’s 27th anniversary yesterday, UCPB president Jose Querubin turned over P400 million as initial fund for the P1-billion Quedancor Agri-Fishery Bonds for Livelihood.

The bonds carry an interest rate based on the three-year market rate plus 0.5 percent per annum for Series A, four-year market rate plus 0.625 percent per annum for Series B, and five-year market rate plus 0.75 percent per annum for Series C.

Landbank on the other hand, opened a P1.2-billion rediscounting window for Quedancor’s Self-Reliant Team (SRT) financing packages. Landbank executive vice president Gilda Pico said that of the total amount, P800 million will be channeled as a rediscounting venture while P400 million will come from the sale of promissory notes (PNs).

Buenaflor said Quedancor will be tapping other financial institutions to be able to meet its projected P5.6 billion lending for 2005.

Quedancor also recently launched together with the Rural Bankers Association of the Philippines (RBAP) a P500-million Multi-Investment Program for Small Farmers and Fisherfolks. Under the program, RBAP members numbering about 725 will purchase promissory notes (PNs) issued by Quedancor to organized small farmers and fisherfolks organizations.

"The PNs cover mostly production and livelihood projects of Quedancor. Through this program, we will be able to expand our loan releases. At the same time, the scheme reduces the delivery cost of banks since it will be our agency that will be retailing the loans," said Buenaflor.

He said the PNs sold by Quedancor to RBAP will be covered by a sovereign guarantee.

Buenaflor said the program enables banks to comply with the Agri-Agra Law which requires financial institutions to set aside at least 25 percent of their total loanable funds to the agriculture and agrarian reform sectors.

Quedancor, the credit arm of the Department of Agriculture, is mandated to speed up the flow of investments and credit resources into countryside enterprises that would spur economic growth and employment.

AGRI-AGRA LAW

BUENAFLOR

DEPARTMENT OF AGRICULTURE

GILDA PICO

JOSE QUERUBIN

LANDBANK

LANDBANK OF THE PHILIPPINES

MULTI-INVESTMENT PROGRAM

NELSON BUENAFLOR

QUEDAN RURAL CREDIT AND GUARANTEE CORP

QUEDANCOR

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