»Mandate and History

 

I. INTRODUCTION
LBP LEASING AND FINANCE CORPORATION (LLFC, formerly LBP Leasing Corporation), a wholly owned subsidiary of Land Bank of the Philippines (LANDBANK) was established under the Corporation Code of the Philippines on March 17, 1983 to complement the product lines being offered by the Bank.

LLFCs leasing facilities make it easier for enterprises to expand, upgrade, or modernize their operations. Among others, leasing enables enterprises to:

  • Match financing terms with the earning potential of the capital asset;
  • Preserve working capital and credit lines;
  • Address existing or current budget limitation; and
  • Obtain financing with no collateral

  • II. HISTORY
    A. Historical Background
    The creation of LBP Leasing and Finance Corporation was in line with Section 21-A of Republic Act No. 337 or the General Banking Act which allows banks such as LANDBANK to invest in equities of companies with allied undertaking such as leasing activities.

    The Corporation was created by LANDBANK to provide support to Land Bank and its clients thru financing and leasing (both financial and operating facilities). It has a secondary license to operate as a Finance Company from the Securities and Exchange Commission (SEC).

    LLFC was organized as a fully owned subsidiary of Land Bank of the Philippines (LBP) with an initial paid-up capital of Two Million Nine Hundred Pesos (P2,000,900.00) and authorized capital of Twenty-six Million Pesos (P26,000,000.00).

    In year 1997, SEC approved the increase of authorized capital to Five Hundred Million Pesos (P500,000,000.00). LBP provided additional equity investment amounting to Three Hundred Million (P300,000,000.00) in year 2000 bringing the total capital stock of the Corporation to Three Hundred Twenty Six Million (P326,000,000.00) by the end of that year.

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