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

1. Interest is aligned with 91-day T-bill rate, payable semi-annually (net of tax)
2. Risk free since AR Bond is guaranteed by the National Government (NG)
3. Transferable and negotiable
4. Inscribed or “Bearer”
5. Non-denominated
6. 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:

1. Financial Institutions
2. Foreign Corporations
3. Private Corporations
4. Insurance Companies
5. Government Owned and Controlle Corporations
6. 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

1. Landowners Assistance and Policy Department (LAPD)
   522-0000 locals 7197, 2414, 2394
2. Agrarian Operations Centers (AOCs) from Regions 1 to 12
3. LANDBANK Branches Nationwide
4. Customer Care Center
5. NCR – 405-7000
6. Domestic Toll-Free Hotline – 1-800-10-405-7000