Monday, September 07, 2009 [ manilatimes.net ]
THE Securities and Exchange Commission (SEC) has spared state-run Home Development Mutual Fund (Pag-IBIG Fund) from having to register its planned multibillion-peso borrowing.
A document from the regulator revealed that the P12-billion bond sale next month is government guaranteed, exempting it from registration requirements.
Pag-IBIG Fund plans to use the proceeds of the sale of long-term IOUs to pay its maturing debts in May next year of P7 billion.
The remaining P5 billion would be set aside in case the agency failed to secure P7 billion for its debt.
The IOUs will carry a five-year and one day term, with a face-value of P10,000, P100,000, P500,000, P1 million and P10 million.
The Bureau of the Treasury will act as the facility agent and registrar of the offering in October.
This year, Pag-IBIG Fund has allocated P84.5 billion for its loan program from P71 billion last year.
Of the total amount earmarked for this year, the company allocated P43 billion for housing loans, P7.5 billion for developers’ financing and P34 billion for members’ multipurpose loans.
Pag-BIG said the demand for loans has been increasing both from middle-income earners and real estate developers despite the global financial crisis.
Pag-IBIG Fund has two million members who are mostly middle-income workers. Of the total membership, overseas Filipino workers account for only 300,000.
At present, Pag-IBIG Fund is offering housing loans of P400,000 to P750,000 with interest rates of 6 percent to 7 percent.
-- Chino S. Leyco
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