First Metro underwrites bonds

The Home Development Mutual Fund (Pag-IBIG Fund) has appointed Development Bank of the Philippines (DBP) and First Metro Investment Corp., the investment banking subsidiary of Metrobank, as the joint issue managers and lead underwriters for its offer of P5 billion worth of bonds launched last week.

Proceeds from the Pag-IBIG Housing Bonds will be used to finance and strengthen the housing programs.

The peso-denominated fixed-rate bond issue may be increased to a maximum of P7 billion, in case of over-subscription. Interest will be payable semi-annually, with principal to be paid in full upon maturity which is five years and one day from the issue date.

The coupon rate will be determined through a Dutch auction to be conducted by the Bureau of the Treasury (BTr), the facility agent. It will be issued in scripless form through its Registry of Scripless Securities (RoSS).

First Metro Investment has been an active partner in government finance. In 2004, the company was among the top five sellers of the sixth retail treasury bonds offer and was the sole arranger of the P780- million short-term bonds of the MWSS. Its dominant performance in raising debt capital for the private and public sectors earned for the company the distinction of The Asset magazine’s "Best Bond House of the Year" in the Philippines in 2004.