SEC approves DMCI’s P1B ‘homestarter’ bonds

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DMCI Project Developers Inc., the wholly owned subsidiary of listed conglomerate DMCI Holdings Inc., has secured the approval of the Securities and Exchange Commission (SEC) to raise up to P1 billion from the issuance of “homestarter” bonds, an alternative investment instrument for future home buyers.

The SEC approved the proposed bond issue of DMCI Project Developers in an en banc session on Thursday.

In a prospectus emailed to media late Thursday, DMCI said it plans to offer the bonds in two sets of P500 million each, with the second offering under shelf registration to be issued one year after the conduct of the initial offer.

The initial P500-million worth of homestarter bonds will be issued in three tranches: Tranche A and Tranche C will each carry interest rates of 4.5 percent per annum and will mature on November 16, 2018, while Tranche B will carry a 5 percent annual interest rate to mature on November 16, 2020.


From each P500-million issuance, the company expects net proceeds of P474.7 million which will be used for working capital and general corporate purposes of DMCI Homes.

The offer date of the initial P500 million bond issue is from September 23 to November 5. SB Capital Investment Corp. was appointed lead underwriter of the offer.

Earlier, DMCI Homes said it targets to produce around 30,000 housing units for 2015 and 2016 in a bid to expand its presence in Metro Manila and in the provinces.

The company is working to hit 15,000 housing units from its ongoing eight projects by the end of this year, and expects to achieve the same number in 2016 with 12 projects.

DMCI Homes is targeting P22 billion in sales and reservations for 2015 from the actual P20 billion generated in 2014.

Other than Baguio and Davao, Metro Manila-centric DMCI Homes also has ongoing negotiations for property acquisitions in Bataan, Naga and Dagupan for future developments.

The company has an existing 50-hectare land bank in Taguig City and 20 hectares more for development within Metro Manila.

DMCI Homes is the real estate subsidiary of the Consunji family’s holding firm DMCI Holdings through DMCI Project Developers.

The Consunji family also has businesses in power generation and mining (Semirara Power and Mining Corp.), real estate and construction (D.M. Consuji Inc. and DMCI Project Developers Inc.), and water utilities in partnership with Manny V. Pangilinan’s Metro Pacific Investments Corp. (Maynilad Water Services Inc.), among others.

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