State-owned Land Bank of the Philippines recently approved a $27-million term loan for the Subic Bay Metropolitan Authority (SBMA).
In a statement, the bank said that the loan will be used to refinance and take-out part of SBMA’s existing foreign loans.
“A top dollar depositor of the LandBank Subic Branch, the SBMA plays a major role in promoting tourism and enabling industrial, commercial and investment growth in the Subic-Clark region, which in turn generates employment and contributes significantly to the country’s economic growth,” it said.
Roberto Garcia, SBMA chairman and administrator, and Edward John Reye, LandBank senior vice president for Corporate Banking, signed the loan agreement.
LandBank recently reported that its loan portfolio grew to P280 billion in the first nine months of 2013, up by 16 percent from P241.9 billion in September 2012.
Loans to its priority sectors expanded to P221.7 billion, representing 79.2 percent of the bank’s total loan portfolio.
LandBank’s priority sectors comprise, among others, agri-aqua-related projects of local governments and government- owned and -controlled corporations (GOCCs), small farmers and fisher folk, microenterprises and small and medium enterprises, and socialized to medium-cost housing, and utilities. Loans to agri-aqua-related projects of local government and GOCCs reached P45.2 billion
Meanwhile, the bank registered a P10.4-billion net income for the third quarter of the year, a 36-percent increase from its year-ago level of P7.6 billion. Its nine-month net income translates to a return on equity of 17.44 percent.