State-owned Al-Amanah Islamic Investment Bank of the Philippines plans to startShariah-compliant financing for local government unitsnext year, according to a statement carried by the Philippine News Agency and reports by The Philippine Star and The Manila Times. The program is confirmed as a plan, not a launched facility: no rollout date, approved loan volume or signed LGU deal was announced. The bank says it will begin in Mindanao, then expand nationwide. That makes the development relevant to Philippine banking technology and financial inclusion, while keeping availability and timing clearly qualified.
Chairperson and CEO Amenah Pangandaman said the bank will finance revenue-generating projects including hospitals, water systems, public markets, slaughterhouses, cold storage, transport terminals, and solar or other power facilities. Service-enhancing projects may include heavy equipment, farm-to-market roads and bridges, municipal or capitol buildings, schools, convention centers, solid-waste facilities and real-property-tax collection systems. Philstar additionally reported that repayment would be matched to an LGU’s revenue cycle, with asset-based structures and fixed profit or rental rates rather than interest. Those terms remain proposed program features, not evidence of an executed transaction.
All provinces, cities, municipalities and barangays may apply under the announced criteria: balanced or surplus actual income for the last three years, efficient collection of real-property and other local taxes, and steady collection growth. Priority goes to LGUs that designate Al-Amanah as their national tax allotment depository. The bank currently serves individuals, agricultural workers, cooperatives and MSMEs with Shariah-compliant financing. The Government Corporate Information and Registration System identifies Al-Amanah as a chartered government-owned corporation under the Department of Finance, with the Development Bank of the Philippines as parent.
The announcement does not mean Philippine LGUs can already draw funds through a new digital application, nor does it establish nationwide access today. Authorities and editors should avoid describing the plan as an active lending product, a digital-payment launch or a completed infrastructure program. The strongest independently corroborated facts are the proposed 2027 start, initial Mindanao focus, possible nationwide expansion, eligible project categories and screening criteria. PNA and The Manila Times reproduce the bank’s statement, while Philstar and Manila Standard independently report the same core plan and add repayment details.
