SB Capital, the wholly-owned investment banking arm of Security Bank, is supporting yet another conglomerate’s quest for capital-raising in the local market. The investment house was tapped as the sole issue manager and underwriter for a bond offering by DMCI Homes, a major property developer and the housing development arm of PSE-listed holding firm DMCI Holdings, Inc . This is DMCI Homes’ first ever issuance of a SEC-registered, public security.
SB Capital has launched the first P500 million out of an approved P1 billion total issuance of HomeSaver Bonds by DMCI Homes.
Investors can choose bond tenures of 3-years or 5-years depending on their specific investment objectives. SB Capital is also providing investors the option to make monthly or a one-time investment on the bonds DMCI Homes is issuing.
“Given the multiple structures being offered, this bond caters to just about every investor looking to secure interest earnings and can also serve to help DMCI Homes’ customers in saving up for the downpayment on a future purchase of their home,” said Ricky Galang, president of SB Capital. “This bond is one of the most attractive bond offerings in the country today.”
Depending on the preferred tenure, the bonds come with fixed interest rates of 4.5% or 5% per annum.
SB Capital added the offer is primarily intended for investors looking to save up for the purchase of a DMCI Homes property as DMCI will be giving a special discount to property purchases by bondholders. However, the bonds will be attractive to any investor given the competitive rates of interest that the bonds will be paying.
“As a bond investor you acquire interest earning debt while saving your money for future use. In this case, you can buy bonds and build capital for the downpayment of your future residential purchase,” said Mr. Galang.
One of the leaders in Philippine capital markets, SB Capital, has been attracting both fund managers (investors) and mid-cap firms (issuers) in the past few years especially after the successful IPO and listing of consumer technology firm, Xurpas Inc. Its recent success is attracting major leagues like DMCI Homes in building up capital to finance expansion needs and other corporate expenses.
In 2010, SB Capital entered a period of unprecedented growth when it got involved in major capital transactions of business conglomerates such San Miguel Corporation, Ayala, Aboitiz, and the Lopez Group.