LAND BANK PHILIPPINES AGRICULTURE LOAN PRODUCTS
Assistance to Landowners
The LTC proceeds of landowner are composed of Cash and Agrarian Reform (AR) Bonds. The 10-year AR bond is an investment instrument issued by the National Government through the Land Bank of the Philippines as a component of the compensation to landowners whose lands were covered by Agrarian Reform Program of the Government. It is a direct and unconditional liability of the Government of the Republic of the Philippines.
Trading of 10-year A.R. Bonds: LANDBANK provides assistance to original bondholders (BHs) in the trading of their Agrarian reform (AR) Bonds to potential buyers.
Why Purchase AR Bond from LANDBANK?
- Professionalized or “One Stop Shop” service
- No minimum investment required
- Proof of bond Purchase/Investment Item
- Confirmation of Sale of AR Bonds in favor of buyer issued by LANDBANK
- AR Bond Certificates inscribed in Buyer’s name, or to Bearer
- Transaction Ease
- Payment by buyers may be through cash, check or debit from a LANDBANK savings/current account
- Easy Access
- LANDBANK has branches and Agrarian Operations Centers (AOCs) nationwide to transact
Features of AR Bonds
- Interest is aligned with 91-day T-bill rate, payable semi-annually (net of tax)
- Risk free since AR Bond is guaranteed by the National Government (NG)
- Transferable and negotiable
- Inscribed or “Bearer”
- Non-denominated
- Investor buys AR bond at a discounted rate
Uses of AR Bonds
- As alternative mode of Bank’s compliance with Agri-Agra Law
- As security deposit of foreign corporations with the Securities and Exchange Commission (SEC)
- As capital and reserve requirement of insurance companies
- As investment instrument
LBP Projected Trading Rates of AR Bonds : (Rates may vary depending on market forces and shall be updated on a monthly basis.)
Eligible Availed/Buyer of AR Bond Trading:
- Financial Institutions
- Foreign Corporations
- Private Corporations
- Insurance Companies
- Government Owned and Controlle Corporations
- Individuals
Bond Marketing: LANDBANK provides assistance to landowners/bondholders by way of letter-offers to potential and willing buyers of the 10-Year AR Bonds at an agreed rate/s.
Contact Units
- Landowners Assistance and Policy Department (LAPD)
522-0000 locals 7197, 2414, 2394 - Agrarian Operations Centers (AOCs) from Regions 1 to 12
- LANDBANK Branches Nationwide
- Customer Care Center
- NCR – 405-7000
- Domestic Toll-Free Hotline – 1-800-10-405-7000
