SEC approves DMCI

by Krista Angela M. Montealegre, Business News Asia

THE PROPERTY subsidiary of Consunji-led DMCI Holdings, Inc. obtained the approval of the corporate regulator to sell retail bonds that aim to encourage home buyers to build capital for future residential down payments.

The Securities and Exchange Commission (SEC) cleared DMCI Project Developers, Inc.’s P1-billion Home Saver Bonds in an en banc meeting yesterday, Armando A. Pan, Jr., officer-in-charge of the Office of the Commission Secretary, said in an interview.

DMCI Project Developers, which operates under the brand DMCI Homes, had said the offering would have an initial tranche of P500 million.

Proceeds from the offer will finance working capital and other general corporate purposes.

Investors who will purchase the securities can convert the debt into down payment for a DMCI Homes property, DMCI Holdings Corporate Communications Officer Cherubim O. Mojica said on May 25.

DMCI Homes is projecting an 11% growth in net profit to P3.6 billion this year from last year’s P3.2 billion. In the first quarter, the property firm’s net income rose at the same pace to P845 million from P762 million.

Sales and reservations are seen hitting P22 billion from last year’s P20 billion, with growth coming from unit sales in five projects to be launched this year and 16 other projects which are currently being built.

This year, DMCI Homes is setting aside P6-7 billion for development expenses and P5 billion for land acquisition.

DMCI Homes is the real estate unit of DMCI Holdings, which also has interests in power generation, water utility, construction, infrastructure development, and coal and nickel mining.

Shares in DMCI Holdings slid 20 centavos or 1.59% to P12.40 apiece.