DMCI eyes Performance Bond float
MANILA, Philippines – Diversified engineering conglomerate DMCI Holdings Inc. of the Consunji family is looking to raise P1 billion this year through the issuance of fixed rate retail bonds to finance projects of its real estate subsidiary.
In a disclosure to the Philippine Stock Exchange, DMCI said its wholly-owned real estate unit, DMCI Project Developers Inc., filed an application to the Securities and Exchange Commission for the registration of fixed rate retail bonds amounting to P1 billion.
“Proceeds of the offer will be used by the company for working capital and other general corporate purposes,” the Consunji-led company said.
DMCI said it intends to issue the bonds in tranches, with the initial offer estimated to be worth P500,000.
DMCI’s real estate arm is preparing to spend as much as P12 billion this year as the company seeks to grow its profits by over a tenth by the end of the year.
The company said it is allocating P5 billion this year solely for land acquisition while development cost for the year is expected to reach P6 to P7 billion.
DMCI Homes intends to launch five projects this year that will add 3,155 units to its existing 40 completed projects consisting of 28,854 units. The projects launched and to be launched this year include Ivorywood and Maple Place in Taguig, Bristle Ridge in Baguio, Valencia Residences in Mandaluyong and Lumiere Residences North in Pasig.
By end 2015, the Consunji’s property unit eyes to hike its 2014 net income of P3.2 billion by 11 percent to P3.6 billion.
Source: By Richmond S. Mercurio (The Philippine Star) | Updated May 26, 2015 – 12:00am