State-run Land Bank of the Philippines has launched a new lending program to support the local hog industry amid threats from the African swine fever (ASF) outbreak.
In a statement, the government-owned lender said it has earmarked P15 billion for the special window and interim support to nurture hog enterprises (SWINE) lending program to assist hog raisers in sustaining and increasing pork production.
The Landbank’s SWINE lending program will be available for commercial hog raisers registered as cooperatives or farmers’ associations, small and medium enterprises (SMEs), and large enterprises or corporations.
Cecilia C. Borromeo, Landbank president and chief executive said they are supporting the Department of Agriculture by extending financing support to hog enterprises to sustain their operations and pork supply during this difficult time.
“Through the Landbank SWINE lending program, we aim to respond to the recovery requirements of our hog industry and contribute to ensuring food security,” Borromeo said.
Loans under the Landbank SWINE lending program shall be used for swine production, which includes the acquisition or importation of semen or breeding animals; and feed milling operations.
It also covers the construction, improvement or retrofitting of necessary facilities that are compliant to biosecurity protocols of DA, the industry or integrators; acquisition of fixed assets; and as working capital.
Eligible borrowers may avail of a short-term loan line or a term loan for up to 80 percent of their total project cost or financing requirement, with an affordable fixed interest rate of 3.0 percent per annum for three-years, subject to annual repricing thereafter.
Under the program, short-term loans have a tenor of one year, term loan for permanent working capital is payable up to five years, while fixed asset acquisition is payable based on the cash flow or payback period of the project, with grace period on the principal and interest.