DMCI Project Developers Inc. (DPDI), the real estate and construction subsidiary of Consunji-led DMCI Holdings Inc., is looking to raise P10 billion by issuing corporate debt notes to finance projects and development costs as well as retire some debts.
In a disclosure to the stock exchange on Tuesday, parent DMCI Holdings said its subsidiary has entered into an agreement with 10 institutions for the issue of P10 billion worth of corporate notes in six series.
The series included P1 billion each for Series F and Series G notes, P2.5 billion each for Series H and Series I notes, as well as P1.5 billion each for Series J and Series K notes.
“The proceeds from the issuance of such notes will be used to fund acquisition of real estate properties, fund its project development costs, refinance its existing indebtedness, and fund other general corporate purposes,” DMCI said.
BDO Capital and Investment Corp. is the lead arranger and sole bookrunner of the notes issue.
The 10 institutions listed as initial note holders of the notes included ALFM Peso Bond-Fund Inc., BDO Leasing and Finance Inc., BDO Private Bank Inc., BDO Unibank Inc., and Bank of the Philippine Islands.
The rest of the note holders are BPI Asset Management and Trust Group as Trustee for Bank of the Philippine Islands Employees Retirement Plan, China Banking Corp., Development Bank of the Philippines, Land Bank of the Philippines, and Security Bank Corp.
The DMCI group through its housing subsidiary DMCI Homes is currently producing 30,000 housing units in 2015 and 2016 in a bid to expand its presence in Metro Manila and in the provinces. The company expects to close 2015 with eight project launches, and 12 projects next year.
DMCI Homes requires P60 billion to fund its 12 projects next year.