Pag-IBIG’s P12-billion bond offering
The Home Development Mutual Fund (HDMF), commonly known as the Pag-IBIG, will be having a P12-billion bond offering starting next month.
In an investors’ meeting held recently were the bonds were launched, HDMF chief executive officer Jaime Fabiaña said the proceeds of the bonds would be used to refinance in maturing P7 billion loan in May, and the rest would be used to add up to their funds.
“The bonds are tax free and enjoy the full and unconditional guarantee of the government through the Home Guaranty Corp.,” said Fabiaña who noted that the bonds have enough sweeteners to attract investors.
Maturing in five years and one day time, the bonds can also serve as alternative compliance by banks with the Agri-Agra Law and qualify as reserve assets of insurance companies and can count as compliance with the Urban Housing Development Act.
Target investors of the bonds are banks, insurance firms and property developers. Development Bank of the Philippines and First Metro Investment Corp., the investment-banking arm of the Metrobank Group has been tapped as arrangers of the investment instrument.
Land Bank of the Philippines joins the two as joint lead underwriters while the Bureau of Treasury will serve as facility agent and registrar.
The Land Bank of the Philppines joins the DBP and the FMIC as joint lead underwriters while the Bureau of the Treasury serves as facility agent and registrar.
In 2009, Pag-IBIG was able to release P46 billion in end-user financing to its more than 74,000 members nationwide.
February 24, 2010
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