Notes issuance for DMCI Homes exceeds expectations at P10B

MANILA, Philippines - DMCI Homes which raised recently P10 billion through a seven-year fixed rate corporate notes facility will use the proceeds to 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. The signing ceremony for the facility’s agreement attended by the developer’s top executives and by investing institution’s senior officers, 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 percent – 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,”said 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 Corp., BDO Leasing and Finance, Inc., United Coconut Planters Bank, ALFM Peso Bond Fund, Inc., EastWest Banking Corp., 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 expressed elation 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.

The recent P10 billion facility’s proceeds will help ensure DMCI Homes’ seamless implementation of planned new residential projects, spurring economic growth through job creation in the construction industry and other related sectors. According to DMCI Homes’ chairman Isidro Consunji.

“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.”