Pag-IBIG plans to bring back Biglang Bahay Bonds
Posted on February 28th, 2010
During the Marcos-era, the Home Development Mutual Fund (HDMF), also known Pag-IBIG Fund run a house-and-lot raffle program called the Biglang Bonds. Now, the state-administered funds manager is planning to revive the said scheme after launching its planned P12-billion bond offering last week.
HDMF chief executive officer Jaime Fabiaña said that under the plan, the agency would sell non-interest bearing bonds and use part of the proceeds to fund a daily house-and-lot raffle worth P1 million. This would run for a period of one year, and bearers of the bonds are all eligible for the raffle. “We’re studying this most likely, we will do this in the third quarter,” Fabiaña said.
The agency did not disclose any details yet as to the amount, but the plan is already proposed to the board and the details are being studied. HDMF is constantly looking for ways to augment the agency’s funds and provide more people easier access to housing.
Starting on March 9, Pag-IBIG would be selling P12 billion in five-year bonds through public auction. The proceeds of the sale would be used to refinance P7 billion in debts maturing in May and the rest would be used to augment the agency’s funds.
Fabiaña believes that the bonds would be able to attract investors because they are tax-free and enjoy the full and unconditional guarantee of the government through the Home Guaranty Corp. Target investors are banks, property developers and insurance firms.
The bonds would have a maturity date of five years and one day, and also serve as alternative compliance by banks with the Agri-Agra Law and counts as reserve assets of insurance companies and compliance with the Urban Housing Development Act.
