DMCI Homes issuing P1-B HomeSaver bonds

By Iris C. Gonzales (The Philippine Star)

MANILA, Philippines - The Securities and Exchange Commission has approved DMCI Homes’ planned issuance of HomeSaver Bonds amounting to P1 billion.

DMCI Homes is the housing development arm of the Consunji family’s listed holding firm DMCI Holdings, Inc. 

“The offer is primarily targeted to benefit the low to middle-income market segment,” DMCI Homes said in a registration statement filed with the SEC.

With the bond sale,  DMCI Homes aims to encourage the low-to-middle income segment to save sufficient funds to enable them to own real estate property in the future.

The bonds will be issued in three tranches, with tranche A to be issued monthly for 36 months; tranche B to be issued monthly for 60 consecutive months; and tranche C to be issued on time on the initial issue date as a single upfront investment and payable in lump sum. 

The annual fixed interest rate are 4.5 percent for tranche A and C bonds, and  five  percent for tranche B bonds.

Proceeds would be used for working capital and other general corporate purposes.

DMCI Homes said the offer is primarily intended to assist retail investors in accumulating savings to be used as downpayment for a DMCI Homes unit.

“In the event the issuer is unable to raise the P500 million initial issue size, the company shall finance its working capital and general corporate expenses using internally generated funds,” DMCI Homes said.

SB Capital Investment Corp. has been tapped as the underwriter for the bond offering.

For 2016, DMCI Homes has lined up P60 billion worth of 12 new projects which will make available a total of 15,000 units.

It expects sales and reservations to reach P22 billion this year from P20 billion in 2014.

In the first six months alone, sales and reservations already reached P10.44 billion, four percent higher than the P10.08 billion recorded in the same period last year.