DMCI property unit issues P10B in debt notes | Inquirer Business

DMCI property unit issues P10B in debt notes

/ 01:56 AM December 09, 2015

The real estate arm of DMCI Holdings Inc. is raising P10 billion through the issuance of long-term debt notes to selected local institutional investors.

In a disclosure to the Philippine Stock Exchange on Tuesday, DMCI said its subsidiary, DMCI Project Developers Inc., had entered into a deal to issue corporate notes.


The DMCI subsidiary, which operates under the brand name DMCI Homes, develops middle-income residences.

Compared to a retail bond offering which requires a more tedious securities registration process, the issuance of corporate notes is a faster way for top-tier corporations to raise funds as these debt securities are sold to no more than 19 institutional investors. In this case, DMCI Homes will issue the notes to 10 institutional investors.


DMCI Homes chief finance officer Joseph Ramil Lombos said in a text message that half of the issuance would have a five-year tenor and the other half, a seven-year tenor.

The property developer is hoping to cap interest rates for both tenors at between 5 and 5.5 percent a year.

Based on the disclosure, proceeds from the issuance of such notes would be used by DMCI Homes to fund its acquisition of real estate properties, its project development costs, refinance existing debt and cover other general corporate purposes.

BDO Capital and Investment Corp. was mandated as lead arranger and sole bookrunner.

The 10 note-holders are: ALFM Peso Bond-Fund Inc.; BDO Leasing and Finance Inc.; BDO Private Bank Inc.; BDO Unibank Inc.; Bank of the Philippine Islands; BPI Asset Management and Trust Group as Trustee for Bank of the Philippine Islands Employees Retirement Plan; China Banking Corp.; Development Bank of the Philippines, Land Bank of the Philippines and Security Bank Corp.

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TAGS: debt notes, DMCI, DMCI Holdings Inc., dmci project developers inc., DMCI property, Philippine Stock Exchange
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