posted October 25, 2015 at
11:35 pm by Jenniffer B. Austria[
manilastandardtoday.com]
DMCI Homes, the property
unit of DMCI Holdings Inc. of the Consunji family, plans to raise P10 billion
next month through the issuance of corporate notes.
DMCI Homes chief finance
officer Ramil Lombos said in an interview the company hired BDO Capital and
Investment Corp. as lead arranger of the notes issue.
“The signing will happen on
Nov. 12 but the drawdown will happen first quarter of next year,” Lombos said.
The notes will have tenors
of five and seven years with interest rates of between five percent and 5.5
percent. The planned issue may involve several financial institutions,
including Security Bank Corp. and Bank of the Philippine Islands.
DMCI Homes plans to use
proceeds from the notes issuance to finance P5 billion in maturing corporate
notes in 2016 and fund the property company’s aggressive expansion plans.
“The P5-billion notes
maturing next year carry an interest rate of seven percent so we’re getting a
cheaper money,” Lombos said.
Lombos said DMCI Homes’
capital spending in 2016 had been set at P12 billion, up from the P10-billion
programmed spending this year.
Meanwhile, Lombos said the
demand for company’s P500-million bond issuance under the HomeSaver Bonds haf
been strong.
Lombos said the total
subscription had reached 70 percent of the total with still two weeks go to
before the end of the offering period.
He said the company might
consider increasing the size of the offering by another P500 million if the
demand exceeded the original amount.
The SEC earlier approved
the plan of DMCI Homes to issue P1 billion worth of HomeSaver Bonds.
The company initially
offered P500 million and kept the balance of P500 million under shelf
registration.
HomeSaver Bonds is an
interest-earning financial instrument that primarily targets retail investors
who wish to set aside funds that may be used as full or partial downpayment to
purchase units in any DMCI Homes development.
The bonds are available for
a minimum subscription of P5,000 per month, while the offering period started
on Sept. 23 and would end on Nov. 5. The company hired SB Capital as
underwriter for the bond sale.
DMCI Homes is issuing the
bonds in three tranches. Tranche A bonds will have minimum investment of of
P180,000 and payable in equal monthly subscription payments of P5,000 over a
period of three years.
Tranche B bonds will have a
minimum investment of P300,000 and payable in equal monthly subscription
payments over a period of five years, while tranche C bonds will be issued
one-time with a minimum investment of P180,000.
Tranche A and tranche C
bonds will both carry a fixed interest rate of 4.5 percent per annum while
tranche B bonds will have a fixed interest rate of 5 percent per annum.
DMCI Homes earlier
projected net income reaching P3.6 billion in 2015, up 11 percent from P3.2
billion in 2014, as it plans to launch five new residential projects offering
more than 3,000 units.
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