DMCI P500-M bond 2nd tranche gets SEC nod

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THE Securities and Exchange Commission (SEC) has approved the proposed issuance by DMCI Project Developers Inc. of the remaining P500 million of its P1 billion home saver bonds, which are aimed at encouraging homebuyers to build capital for future residential down payments.

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In September last year, the SEC approved DMCI’s P1 billion Home Saver Bond proposal and in October, the developer launched the first P500 million tranche of the bond offer.

Project Developers Inc. is the property arm of DMCI Holdings, Inc., which is engaged in water, power generation, infrastructure, construction development, and coal and nickel mine businesses.

“The second offer is primarily intended to assist retail investors in accumulating savings to be used as down payment for a DMCI Homes unit. Capital-raising is only secondary to the foregoing purpose,” the company said in a statement.

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

Tranches D and F of the IOUs will fall due in 2019 and will have a coupon rate of 4.75 percent of the face value per year. Meanwhile, tranches E and G bonds, which will both mature in 2021, will have an interest rate of 5.25 percent per year.

For tranche D, the company will issue the debt paper in a minimum denomination of P5,000 in 36 months; for tranche E, DMCI will issue P5,000 of the bonds in the course of 60 months. For the remaining tranches, the company will issue a one-time minimum denomination of P180,000.

“The amount of the proceeds of the offer expected by the company will be received in the course of sixty months, therefore, such proceeds are not projected to fund any specific transaction but shall be used only for working capital and general corporate purposes, such as the marketing and administrative expenses of the company,” DMCI said.
SB Capital Investment Corp. has been chosen as the deal’s underwriter.

Since its establishment in 1999, the property development unit of DMCI has launched 56 projects, which are mostly condominium units in mid-rise and high-rise developments across Metro Manila, or within five kilometers of city centers.

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