Landbank seeks $620M from foreign sources

The Land Bank of the Philippines (Landbank) is in the process of negotiating a total of $620.1 million in loans from various foreign financial institutions to on-lend to its priority sectors which include cooperatives, small and medium enterprises, agribusiness, local government units (LGUs) and other development players.

Of the total $620.1 million that the bank is sourcing, $247.4 million is already in the final stage of negotiation and will be available for on-lending this year, while the balance of $372.7 million is still in the pipeline.

In a press briefing, Landbank president and chief executive officer Gilda E. Pico said negotiations are in the final stages for a $243.9 million from the Japan Bank for International Cooperation (JBIC) and $3.51 million from the German KfW Bank.

The JBIC is extending two loans.

One is a $150-million fund for the Support Program for Agri-Enterprise Development.

The program seeks to spur rural economic growth and in turn improve the country’s living conditions.

The program also aims to harness the participation of major agriculture and agribusiness players by linking small farmers and fisherfolk with viable SMEs and agribusiness enterprise, and thus pave the way for more productive undertaking and higher economic returns.

The second facility is a $93.9-million two-step loan for Clean Development Mechanism (CDM) and Renewable Energy.

The funds will be offered to government-owned and controlled corporations (GOCCs), LGUs and the private sector that are undertaking CDM and renewable energy projects.

Landbank is likewise in the final stages of negotiations with the German KfW Bank for a $3.51-million Community-based Forest and Mangrove Management Program in Panay and Negros.

The environmental program will address the protection and utilization of forest resources in selected watersheds, and ultimately help reduce poverty in the areas identified.

Pico said that the bank is also talking with the Asian Development Bank (ADB) and the World Bank (WB) for long-term financing of development projects that are in line with Landbank’s thrust and mandate of promoting rural economic growth.

Other foreign-funded projects in the pipeline, Pico said, are a $100-million JBIC loan for various water, energy and environment projects; a $72.7-million KfW credit line for environment; a $100- million line from the European Investment Bank and a similar $100 million from the China Development Bank.