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DMCI gets clearance to sell P1-b homesaver bonds

The Securities and Exchange Commission approved the P1-billion homesaver bonds of DMCI Project Developers Inc., the real estate unit of conglomerate DMCI Holdings Inc.

SEC secretary Armando Pan Jr. said in an interview the corporate regulator approved DMCI’s issuance of deferred coupon-paying homesaver bonds with an initial offer of P500 million. The remaining P500 million will be issued within a year.

Homesaver bonds are interest-earning financial instrument that primarily targets retail investors who wish to set aside funds that may be used as full or partial downpayment to purchase units in any DMCI Homes development.

The bonds will be issued in three tranches. Tranche A bonds will have minimum investment of of P180,000, payable in equal monthly subscription payments of P5,000 over a period of three years.

Tranche B bonds will have a minimum investment of P300,000  payable in equal monthly subscription payments over a period of five years while tranche C bonds would be issued one-time with a minimum investment of P180,000.

Tranche A and tranche C bonds will both carry a fixed interest rate of 4.5 percent per annum while tranche B bonds will have a fixed interest rate of 5 percent per annum.

The investment scheme targets future home buyers.  A bondholder that will opt to use the proceeds from the bonds to purchase a unit from DMCI Homes will be entitled to discount.

The company hired SB Capital as the underwriter for the bond sale, with the offer period set on Sept. 23 to Nov. 5.

Other property developers such as Ayala Land Inc. and Vista Land and Lifescapes Inc.  previously issued similar financial saving instruments.

DMCI Homes earlier projected its net income to hit P3.6 billion for 2015, an 11-percent increase from last year’s P3.2 billion, as it plans to launch five new residential projects offering more than 3,000 units this year.

The projects to be launched this year include Ivorywood and Maple Place in Taguig, Bristle Ridge in Baguio, Valenia Residences in Mandaluyong and Lumiere Residences North in Pasig.

Reservations sales fthis year are expected to reach P22 billion, up from last year’s P20 billion.

DMCI Homes is allocating P5 billion purely for land acquisition and and up to P7 billion for development cost.

DMCI Homes also lined up nine new projects that will offer 10,700 units in the market in 2016.

DMCI is one of the leading conglomerates in the Philippines, with interests in construction, real estate, power, water, mining and toll roads.

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