DMCI launches P500M in ‘homestarter’ bonds

THE REAL estate arm of Consunji-led conglomerate DMCI Holdings has rolled out the first P500 million of a “homestarter” bond offer targeting retail investors, including those building seed capital for future home purchases.

This marks DMCI Homes’ debut into the debt market and accounts for the first tranche of the P1-billion issuance earlier approved by the Securities and Exchange Commission (SEC).

Investors can choose bond tenures of either three or five years depending on their specific investment objectives. The three-year tenor was priced to yield 4.5 percent a year while the five year-term has a fixed interest rate of 5 percent a year.

SB Capital was mandated the sole issue manager and underwriter for DMCI Homes’ bond offering, which will run until Nov. 5.

“Given the multiple structures being offered, this bond caters to just about every investor looking to secure interest earnings and can also serve to help DMCI Homes’ customers in saving up for the downpayment on a future purchase of their home,” said Ricky Galang, president of SB Capital. “This bond is one of the most attractive bond offerings in the country today.”

Investors have the option to make monthly or a one-time investment in the homestarter bonds, which are offered at a minimum investment of P5,000 a month for the serial bonds and P180,000 for the lump-sum option.

“As a bond investor, you acquire interest-earning debt while saving your money for future use. In this case, you can buy bonds and build capital for the downpayment of your future residential purchase,” said Galang.

Operating since 1999, DMCI Homes develops affordable residential units in “urban-friendly, serviced communities.” In 2014, it posted a net income of P3.29 billion compared to P2.65 billion in the previous year. Doris Dumlao-Abadilla