Pag-IBIG chief bats for housing bonds

"The Pag-IBIG Fund housing bond was presently the highest yield in the market, making it the most profitable investment tool today," said lawyer Romero F. S. Quimbo, Pag-IBIG Fund’s acting president and CEO, during the conference on housing needs of government employees spearheaded by the Philippine Government Employees Association.

P2 billion worth of Pag-IBIG housing bonds were offered in the financial market late last year. The proceeds from the sale of the bonds shall be used to finance the housing program of the government.

"Specifically, the proceeds will fund approximately 10,000 housing units providing shelter security to over 30,000 households," Quimbo said.

The bonds have a term of five years and one day with an interest of eight percent per annum, tax free, and payable semi-annually. The bonds are available in denominations of P5,000, P10,000, P50,000, P100,000, P500,000 and P1 million.

"For the same five-year instrument, our housing bonds are the most competitive, especially now that Treasury bill rates have dipped to as low as four percent."

Pag-IBIG members and non-members, overseas Filipino investors, insurance companies, retirement funders, institutional investors and developers may invest in the Pag-IBIG housing bonds. The Development Bank of the Philippines (DBP) is the registered paying agent and trustee bank while the Home Guarantee Corp. (HGC) is the guarantor. The HGC guarantee carries with it the unconditional guarantee of the Republic of the Philippines.

Aside from high earnings, institutional and individual investors can win a house and lot package amounting to at least P500,000 through a semi-annual raffle draw. The first raffle draw is scheduled on June 8.

"We are raffling off approximately eight house and lot units every year, which are not only limited to Metro Manila but in the provinces as well."

Quimbo encouraged government employees who account for 35 percent of Pag-IBIG’s total membership to avail themselves of the bonds.

"You not only earn, but you also support the government’s mass housing program. More importantly, you get a chance to win a brand new house and lot package. Where else can you find a better deal?" he said.