Landbank raises P10.5B from notes issue

Posted at 01/26/12 4:38 PM

MANILA, Philippines - State-run Land Bank of the Philippines has raised P10.5 billion from the issuance of peso Tier 2 notes to expand its capital base.

In a statement, Landbank president and CEO Gilda Pico said the notes issue, the "largest ever" launched by a Philippine bank, enjoyed strong demand from investors.

Pico said the issue was upgraded from the originally announced P6.5 billion after the bank received orders of as much as P12.5 billion.

"We are very pleased with the results of our capital raising exercise. The Tier 2 notes will further strengthen Landbank's capital ratios and provide us significant room to continue pursuing our mandate of supporting countryside development," she noted.

The notes, which carry a coupon rate of 5.875% per annum, will mature in 10 years and 3 months, with a call option after the fifth year.

Landbank tapped Deutsche Bank AG (Manila), The Hong Kong and Shanghai Banking Corp. Ltd. and Standard Chartered Bank as joint lead arrangers and selling agents for the transaction.

Multinational Investment Bancorporation also acted as selling agent.