August 15, 2023


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

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