Posted on October 31, 2012 08:26:21 PM [ BusinessWorld Online ]
DMCI Project Developers, Inc. (DMCI Homes), the wholly owned property arm of DMCI Holdings, Inc., has raised P10 billion in fresh capital for project spending and land banking from a recent notes issue, the listed parent said in a disclosure to the Philippine Stock Exchange on Wednesday.
“This is to inform the investing public that our real estate and housing development subsidiary, DMCI Homes, recently signed a facility agreement with a group of primary institutional lenders for DMCI Homes’ issuance of P10 billion in seven-year fixed-rate corporate notes,” the disclosure read.
DMCI Homes said it will use issue proceeds “to finance project development and construction costs, acquire real estate properties, and fund other general corporate purposes.”
“The amount is already provided by local banks, to be drawn within one year,” Aldric G. Borlaza, DMCI Holdings senior finance officer, said in a text message when asked on the profile of the issue’s institutional investors.
The notes issue was originally sized at P5 billion, but robust demand prompted DMCI Homes to exercise the issue’s overallotment option and upgrade the issue size to P10 billion, the disclosure said.
Sy-led BDO Capital & Investment Corp. served as lead arranger and sole bookrunner of the notes issue.
DMCI Homes had allotted P8 billion in capital expenditures to bankroll its property projects this year.
The property firm last March acquired three lots on Sheridan Street, Mandaluyong City, previously owned by food firm Swift Foods, Inc. for P500.22 million, boosting the the former’s land portfolio by an additional 11,116 square meters.
DMCI Homes grew its net income by 42.01% to P1.2 billion in the first half from P845 million the previous year, while revenues rose 40.63% to P4.5 billion from P3.2 billion, DMCI Holdings’ end-June financial statement showed.
DMCI Holdings, for its part, hiked profits 9.47% to P5.78 billion from P5.28 billion in the same comparative six-month period, thanks to gains made in its principal coal mining and infrastructure businesses.
In the same six-month period, revenues -- mostly from coal sales and construction contracts -- rose 4.81% to P27.47 billion from P26.21 billion, while cost of sales and services expanded 10.07% to P17.81 billion from P16.18 billion.
Shares of DMCI Holdings were traded at P54 apiece on Wednesday, unchanged from Tuesday’s close. -- Franz Jonathan G. de la Fuente