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Pag-IBIG to issue P3-billion retail housing bonds

- Iris Gonzales -

MANILA, Philippines - The Home Development Mutual Fund (HDMF) or Pag-IBIG is eyeing to issue P3 billion worth of retail housing bonds next year to provide overseas Filipinos investment options, a ranking official of the agency said.

“We will be offering retail Pag-IBIG housing bonds next year because from our housing fairs in Hong Kong, Singapore and even in Europe, there is clamor for a savings program that would allow OFWs, especially those with high net worth, to save,” said Emma Linda Faria, deputy chief executive officer for the support services cluster, HDMF.

She said that while the agency is looking at issuing P3 billion, the amount could go higher, depending on the demand.

Faria said that the OFWs can save on a one-time basis instead of saving on a monthly basis.

“They get return on their savings and at the same time, participate in the country’s housing program,” she said.

Last year, the agency issued retail Pag-IBIG housing bonds worth P2 billion and then prior to that another P2 billion in 2003.

“As a special feature of these retail bonds that we issued previously, we hold a raffle where every P10,000 worth of investments in the housing bonds, entitles the bondholder to have a chance to win a house and lot worth P1 million,” she said.

Under the proposal, the bonds would have a term of five years, interest rate of five percent, the same rate for last year’s retail housing bonds and are tax-free.

Pag-IBIG has P12 billion in maturing debts in 2015 and P2 billion in 2014.

Last March, Pag-IBIG Fund successfully sold P11.963 billion in five-year bonds. The bonds were well-received by investors because these served as alternative compliance by banks with the Agri-Agra Law and as reserve assets of insurance companies and compliance with the Urban Housing Development Act. It was also guaranteed by Home Guaranty Corp., currently headed by Gonzalo Bongolan.

Pag-IBIG is the state-owned agency that provides affordable home financing to members. It also provides personal and other emergency loans.

vuukle comment

AGRI-AGRA LAW

BILLION

BONDS

EMMA LINDA FARIA

GONZALO BONGOLAN

HOME DEVELOPMENT MUTUAL FUND

HOME GUARANTY CORP

HONG KONG

HOUSING

LAST MARCH

PAG

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