NDC to raise P3B for agri

The National Development Company (NDC), the investment arm of the Department of Trade and Industry (DTI), is set to offer this month NDC Agri-Agra Bonds (AA Bonds) that would raise P3 billion for agriculture and agrarian reform support-service projects.

The AA Bonds are obligations of the NDC with a direct and unconditional guarantee by the National Government and would have a term of 10 years from the date of issue as the development projects to be funded have a long gestation period. Interest payments shall be made semi-annually and shall be tax exempt.

Further, the AA Bonds have the following eligibilities: as liquidity reserve for deposits, deposit substitutes, common trust funds and other fiduciary accounts; as liquidity floor for government deposits; as a security for the faithful performance of trust duties; and as an alternative compliance to PD 717 (Agri-Agra)

The planned bond float constitutes the third tranche of NDC AA bonds which are being issued in accordance with Executive Order 83 issued on Dec. 25, 1998.