Saturday, September 5, 2009 | MANILA, PHILIPPINES [ BusinessWorld Online ]
The Securities and Exchange Commission has exempted from registration requirements the planned P12-billion bond sale of the Home Development Mutual Fund or Pag-IBIG Fund next month, since the securities are guaranteed by a state corporation, documents showed.
Pag-IBIG Fund said proceeds from the bond sale would be used to refinance maturing bonds in 2010, as well as housing programs.
It said the first tranche of the offer, worth P7 billion, would be swapped for Pag-IBIG bonds maturing on May 17, 2010. The government financial institution said the remaining P5 billion would be issued if it does not raise P7 billion during the first stage.
The bonds will have a term of five years and one day, and pay a fixed interest semi-annually, tax-free. Investors may buy the bonds in denominations of P10,000, P100,000, P500,000, P1,000,000 and P10,000,000.
According to the Pag-IBIG Fund Web site, buyers of the bonds will be required to open and maintain a deposit account with the Development Bank of the Philippines or Land Bank of the Philippines. Interest earnings from the bonds will automatically be credited to the accounts.
The Bureau of the Treasury will act as the facility agent and registrar of the offering in October.
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