Landbank extends P1.3 billion loan for Isabela feed mill

MANILA, Philippines — State-run Land Bank of the Philippines is extending a P1.3-billion financing to Sagittarian Agricultural Philippines Inc. (SAPI) to partially fund a 15-hectare feed mill facility in Isabela.

Of the total funding, P1.2 billion will be used for the construction of the complex, while a credit line of P100 million will finance SAPI’s working capital requirements.

“With this investment, Landbank reaffirms its commitment to modernizing the agricultural sector, empowering local farmers and strengthening the country’s food security and supporting the agriculture value chain,” Landbank president and CEO Lynette Ortiz said.

Located in Ilagan City, the feed mill facility is set to be leased to Charoen Pokphand Philippines Corp., a food and agro-industrial firm that has been a long-time client of Landbank.

The project, the state-owned bank said, is expected to increase corn prices by up to P2 per kilo, potentially benefiting close to 100,000 small farmers across Isabela and neighboring provinces.

The average farmgate prices of matured white and yellow corn grains, respectively, stood at P18.63 and P15.45 per kilo in 2024, latest data from the Philippine Statistics Authority showed.

As an agricultural company, SAPI aims to become a major player in integrated farming, animal production, real estate and allied agribusiness services in the Philippines and abroad.

Landbank, on the other hand, is the country’s largest development financial institution committed to providing accessible and responsive financial solutions to empower Filipinos. It is currently present across 82 provinces nationwide.