LBP

October 2022

BAGUIO CITY (PIA) -- The Land Bank of the Philippines (LBP)   supports  the development of the bamboo
industry in the country through the KAlikasan, Kabuhayan sa WAstong PamaYANan or KAWAYAN
Financing Program.

LBP Assistant Vice President and Benguet Lending Center Head Jaime Cruz said that the program aims to
provide credit assistance to various players in bamboo production and bamboo basic economic activity and
assist local bamboo players gain a big chunk of the multi-billion dollar industry. It also aims to help the
government in making the country as the world's biggest bamboo producer and increase farm productivity and
household income and generate employment.

"In bamboo, Landbank will be able to attain triple bottom line-that is economic value, social and environmental
importance," Cruz said. 

Eligible borrowers include cooperatives, federations, associations, non-government organizations, countryside

financial institution, small and medium enterprises, agri-business entities, and local government units.

 The bank may finance loans for production, permanent working capital, rediscounting, and fixed assets
acquisition for bamboo production, processing and other bamboo based economic activities.

Cruz said that the interest rate adopts the regular pricing structure for each identified client sector.

 
"The interest rate is depende sa proposal. The rate is negotiable naman, titingnan natin 'yung magandang rates,"
he said.
 
 LBP Assistant VP and Benguet Lending Center head Jaime Cruz during the Green Gold Talk III on September 30, 2022.

The maximum loanable amount is 80 percent based on the commodity module for bamboo or technology
protocols published by appropriate entity or based on the technology protocol agreed upon by the parties.

For local government units, they are allowed to borrow not more than the net borrowing capacity.

 
"Ang puwedeng ipahiram ng Landbank is up to 80%. So, kung ang project cost po ninyo is one million, ang
puwedeng hiramin ng magsasaka ng kawayan is up to P800,000, 'yung  P200,000, 'yun po 'yung equity niya,"
Cruz explained.

 
Approval of loan application may take 45 days upon completion of requirements.

Interested borrowers are advised to visit the Landbank Field Unit nearest them. (JDP/DEG-PIA CAR)
DBP

Agroforestry Plantation Program

(APP)

The Agroforesty Plantation Program (APP) is a credit assistance program for the
development, expansion, harvesting, processing, maintenance and protection of industrial
forest-based plantations in qualified private and public land consisting of at least five (5) to
forty thousand (40,000) hectares of open area.

Eligible Criteria

 For Public Land
 With valid tenurial agreement with DENR e.g. Socialized Industrial Forest Management
Agreement (SIFMA), Integrated Forest Management Agreement (IFMA), Community-Based
Forest Management Agreement (CBFMA)
  With approved Comprehensive Development and Management Plan (CDMP) / Indicative
Management Plan (IMP) / Community Resource Management Framework (CRMF) and Five-
Year Work Plan (FYWP).
 For Private Land
 With Certificate of Tree Plantation Ownership from DENR

Eligible Borrower


 Plantation operators/ tenure holders who are registered with the Securities and Exchange
Commission (SEC), Department of Trade and Industries (DTI), Department of Labor and
Employment (DOLE) or Cooperative Development Authority (CDA), Local Government Units
(LGUs) People’s Organization (PO) and PO Federation with at least five (5) to forty thousand
(40,000) hectares of open area.

Eligible Loan Purpose


 Working Capital
 Acquisition of machinery and equipment
 Construction/Establishment of Facilities

Eligible Loan Projects


 Plantation Development
 Plantation Expansion
 Plantation Maintenance and Protection
 Acquisition of pre-harvest and post-harvest facilities e.g. processing plant, kiln
 Harvesting of mature species
 Establishment of facilities e.g. lookout tower, bunkhouse, water system, fire lines
 Development of project site as eco-tourism destination

Eligible Species

 Roundwood
 Fuelwood
 Woody Biomass
 Bamboo
 Rattan
 Coffee
 Cacao
 Rubber
 Other fruit-bearing trees such as but not limited to Mango, Lanzones, Pomelo

Loanable Amount

 For regular loans, up to maximum of 80% of the total project cost
 For LGUs, maximum of 90% of total project cost or winning bid price, whichever is lower.

Loan Tenor

 Term Loan – shall be based on the projected cash flow but shall not exceed fifteen (15) years,
inclusive of grace period. For acquisition of fixed assets and establishments of facilities, term of the
 loan shall be based on the projected cash flow but shall not be more than the economic useful life
of the asset.
 Credit Line – shall be based on the cash conversion cycle but not more than 360 days.

Interest Rate

 Prevailing Market Rate

Grace Period

 Up to 7 years, depending on the type of plantation

Collateral Security

 Any or combination of the following:

1.
1.
a. Real Estate Mortgage
b. Chattel Mortgage
c. Assignment of Insurance or guarantee coverage
d. Assignment of supply contract/receivables
e. Continuing Suretyship (JSS) or Co-makership
f. Holdout on deposit
g. For LGUs, Deed of Assignment of specified portion of IRA
h. Other security arrangements acceptable to DBP.

Documentary Requirements

 Basic Requirements
 Letter of Intent
 DBP Application Forms
 Photocopy of valid government-issued ID of the principal or authorized signatory
 Certified true copy of transfer certificate of title (TCT) or Title Lease Agreement or Tenurial
Agreement with DENR
 Audited Financial Statements and Income Tax Returns for the last three (3) years duly
stamped as received by the Bureau of Internal Revvenue (BIR)
 Latest Business Permits (Mayor’s Permit and Barangay Permit)
 CDMP/IMP/CRMF & FYWP for tenure holders
 Business Plan for private landowners
 Certificate of Tree Plantation Ownership from DENR (private landowners)
 Endorsement Letter from DENR

Download brochure

For inquiries feel free to contact:

Erdie Leah Banzali

Program Development and Management II
(02) 818-9511 local 2349
elmbanzali@dbp.ph