Landbank inks agreement with 2 rural banks

State-owned Land Bank of the Philippines (Landbank) signed two separate agreements with the Cooperative Rural Bank of Bulacan and the Zambales Rural Bank for their Unsecured Subordinated Debt Facility.

The facility is aimed at beefing up the capital base of countryside financial institutions, Landbank said.

Furthermore, Landbank said the facility would help these two institutions comply with the stricter requirements of enhanced Basel I, a global set of banking standards.

“This facility also aims to further expand their agri-lending operations and ensure long-term viability of countryside financial institutions,” Landbank said.

At present, Landbank’s subscription has reached P482.5 million to five CFIs.

This is expected to increase to a total of P580.5 million upon the release of the dollar proceeds to the two banks.

 “Landbank and our partner-CFIs share the privilege and responsibility of promoting rural economic growth. And as agents of change, we need to continually strengthen ourselves, improve our systems and strive for greater efficiency,” said Landbank officer-in-charge and executive vice president Wilfredo Maldia during the debt agreement signing ceremony.