HGC to sell P5.5-billion bonds for its refinancing needs

MANILA, Philippines - State-owned Home Guaranty Corp. (HGC) will proceed with its plan to sell P5.5 billion in seven-year bonds by June to raise funds for its refinancing needs, its top official said yesterday.

“Proceeds would be used to refinance outstanding debt,” HGC president Gonzalo Bongolan told reporters on the sidelines of a housing summit yesterday.

Bongolan said the agency would push through with its fund-raising activity, unfazed by the difficult economic tide.

He expects strong investor appetite for the bonds, given the improving finances of the agency.

He said that the last time the agency offered bonds which was in 2007, there was strong market appetite. The agency expected to offer only P7 billion worth of bonds then but it was able to sell P8.2 billion, he noted.

In 2006, the agency sold P12 billion in bonds, Bongolan added.

Home Guaranty is a government-owned and controlled corporation mandated by law to extend guarantee cover to all bond issuances of other state-run firms.

Bongolan is optimistic that the agency would continue to improve operations this year on the back of prudent strategies and continuous disposal of assets.