DMCI Homes signs P5-B fixed rate notes facility agreement

MANILA, Philippines - The middle-income housing sector recently received a significant boost through top-performing DMCI Project Developers, Inc., operating under the brand name of DMCI Homes, signing a P5-billion fixed-rate notes facility agreement at the Mandarin Hotel last Jan. 14, 2011.

The corporate notes facility was the initial foray of DMCI Homes in the capital markets, boding well for a company that has steadily gained reputation as a leading real estate player that serves a young family market.

The signing ceremony was attended by top executives of DMCI Homes and BDO Capital & Investment Corp., who acted as lead arranger and sole bookrunner for the corporate notes. The initial noteholders consist of the country’s top financial institutions, including: Banco De Oro Unibank, Inc., China Banking Corp., Bank of the Philippine Islands, BDO Leasing and Finance Inc., Land Bank of the Philippines, Security Bank Corp., and United Coconut Planters Bank.

The DMCI Group, which has deep, solid roots in the construction industry, has parlayed its core competency into community development ventures such as mid-and high-rise housing projects through the brand DMCI Homes. Distinguishing itself as triple A builder-developer, DMCI Homes offers condominium units with bigger spaces, resort-style amenities, quality finishes, efficient property management, and financing options for unit buyers.

BDO president and CEO Nestor Tan said the fact that oversubcription reached P11 billion was a testament to the strength of the company. In response, Alfredo Austria, president of DMCI Project Developers, Inc. expressed his group’s gratitude for the support of the banks and promised that end-users, particularly young families who dream of owning homes in strategic locations within Metro Manila, will enjoy the benefits of the P5-billion capital markets deal.

The fixed-rate notes facility ensures that DMCI Project Developers, Inc. will not be subject to loan re-pricing every year.

According to Joseph Ramil Lombos, DMCI Homes director for finance and operations, the firm issued notes to finance its expansion – acquire more land and invest on engineering technologies – to offer better quality homes that are affordable.

“It’s the debut of DMCI Homes into the capital markets, of raising capital from outside. They are that big now, they are that strong,” said Eduardo Francisco, president of BDO Capital & Investment Corp. BDO Capital has early on identified the DMCI Group as having good growth projects and various core competencies, ‘Sso we try to help finance them in construction, homes, water, coal and other power, because we know that when they go inside there, pinag-aralan, and we believe in them.”

The proceeds of the P5-billion corporate notes will be used up hopefully within the year, according to Lombos.

“DMCI Homes is the country’s premier triple A builder-developer that brings serviced, themed communities within reach of urban families who once had limited residential options, but still aspire to achieve a comfortable, enriching quality of life proximate to their place of interest.