DMCI Homes Raises P10 Billion From Sale Of 7-Year Notes

Proceeds from the P10-billion notes issue will finance the continued development and construction of DMCI Homes’ resort-inspired communities, as well as the acquisition of real estate properties in strategic locations around Metro Manila. Shown at the signing of the underwriting agreement for the bond issue are (from left): Ronaldo C. Reyes, BDO Capital AVP; DMCI Homes SVP for Finance and Operations Ramil B. Lombos; DMCI Homes Chairman Isidro A. Consunji; and DMCI Homes President Alfredo R. Austria.

DMCI Homes Inc. recently raised P10 billion from the sale of 7-year fixed rate corporate notes, double the original planned amount of P5 billion

Proceeds from the bond sale will be used by the developer in expanding its themed-community housing development projects for mid-income families, acquiring real estate properties and for general corporate purposes.

The signing ceremony for the facility’s agreement attended by the developer’s top executives and by investing institution’s senior officers.

The company sale the sale of its corporate notes to reaffirmed DMCI Homes’ status as one of the most trusted real estate players in the country today with a portfolio of more than 40 successful projects, which continues to grow.

“The fact that the initial offer of P5 billion was oversubscribed by more than 100% – prompting DMCI Homes to fully exercise its oversubscription option, thus increasing the issue size of these notes to a hefty P10 billion – is a clear indication that the lenders have recognized the strengths of the company,” disclosed Walter Wassmer, Senior Executive Vice President, BDO Unibank, Inc. in his speech on behalf of the note holders during the ceremonies.

The facility’s note holders include BDO Unibank, Inc., Bank of the Philippine Islands, Land Bank of the Philippines, Security Bank Corporation, BDO Leasing and Finance, Inc., United Coconut Planters Bank, ALFM Peso Bond Fund, Inc., East-West Banking Corporation, and BPI Asset Management and Trust Group. Sycip Salazar Hernandez & Gatmaitan acted as counsel for the facility’s note holders, while Castillo Laman Tan Pantaleon & San Jose acted as DMCI Homes’ counsel.

BDO Capital President Eduardo Francisco was elated at being able to act as lead arranger and sole book runner for a corporate notes issue again for DMCI Homes, the company’s second corporate notes transaction since last year’s P5-billion issue.

DMCI Homes’ Chairman Isidro Consunji said: “We are reaping tremendous success this year, and with the launch of high-rise projects and mid-rise communities, we are able to add more than 4,000 residential units to our inventory this year. The partnership that we have forged has been instrumental in this achievement.” In 2013, the company is expecting to develop more projects in strategic locations in Metro Manila, such as in Pasay, Taguig, Makati, Mandaluyong, Pasig, and Quezon City.

“This is the biggest single financing exercise that we’ve done,” said Ramil Lombos, DMCI Homes Senior Vice President for Finance and Operations. “It will fast-track some of our projects in terms of the schedules, increase our inventory, and at the same time, enable us to acquire more properties for land banking that can be developed two years from now.” For end-users, this means that “the choices will be wider; we can offer homes that are of exceptional value to more families in the middle-income segment so they can expect more exciting projects from DMCI Homes.”

According to DMCI Homes SVP for Finance and Operations Ramil Lombos, the notes issue agreement is “the biggest single financing exercise” that the company has entered into, and is expected to benefit middle-income families in terms of providing added choices and improved housing products.

Published on Manila Bulletin, November 22, 2012

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