Pag-IBIG Housing Bond

WHAT ARE Pag-IBIG HOUSING BONDS

Pag-IBIG Housing Bonds (Series 2007)* are bonds issued by the Home Development Mutual Fund (HDMF) to finance its housing loan program. The Bonds have a term of five (5) years and one(1) day.

*Issuance of the Pag-IBIG Housing Bond is contingent upon the prior endorsement of the Department of Finance and the approval by the Monetary Board of the Bangko Sentral ng Pilipinas and the finalization of the HCG Contract of Guaranty.

WHAT ARE THE OTHER FEATURES OF THE BOND?

• Allowable investment of insurance companies
• Acceptable collateral for a developer's loan with Pag-IBIG Fund
• Acceptable deposit in lieu of surety bond for collecting agents of Pag-IBIG Fund and
• For developer-investors, the Bonds are deemed sufficient compliance with Section 18 of R.A. 7279, subject to pertinent guidelines.

Eligible bondholders shall also be entitled to participate in an annual raffle draw with minimum of two (2) units of House and Lot packages/ Lot worth P1 Million each. For every P10,000 Bond held, an eligible bondholder is entitled to one raffle number.

Bond holder eligible to the annual raffle draws are:

• Individuals
• Retirement Fund
• Provident Fund
• Cooperatives

WHO CAN INVEST IN THE BONDS?

Members and non-members of Pag-IBIG, Filipinos and foreign nationals, corporations, developers and insurance companies may invest in the Pag-IBIG Housing Bonds. All Bond investors will be required to open and maintain a deposit account with either the Development Bank of the Philippines (DBP) or Land Bank of the Philippines (LPB).

Denomination of P10,000, P100,000, P500,000, P1,000,000 and P10,000,000 are available to all investors. There is no limit as to the amount of Bonds an investor can purchase.

WHAT IS THE INTEREST RATE OF THE BONDS?

An investor will be paid on a semi-annual basis a fixed interest rate which is tax-exempt by virtue of the Home Guaranty Corporation (HGC) guarantee on the Bonds. The interest earnings shall be automatically credited to the savings account of the bondholders on record with DBP or LBP. The actual rate on the bonds will be based on prevailing rate on Interest Rate Setting Date

Sample Computation ( Interest rate of 5.0% per annum)

Amount Invested	:PhP 10,000.00
Coupon Rate	:5.00% net (**)
Semi-Annual Interest Earnings(***)	:Php 250.00

(**) Indicative interest only and actual interest rate will be based on prevailing rate on Interest Rate Setting Date.

(***) Exempt from the payment of the 20% final with holding tax

WHAT ARE THE INVESTMENT SECURITY FEATURES OF THE BONDS?

The Home Guranty Corporation (HCG) provides a cash guaranty on the entire amount of principal and interest of up to 10.50%. The Guaranty of HGC carries the unconditional guaranty of the Republic of the Philippines. In addition, a debt repayment fund shall be maintained with DBP Trust Services.

AFTER THE PUBLIC OFFERING, CAN AN INVESTOR STILL BUY THE BONDS?

Yes. The Bonds ca still be bought at the secondary market through DBP and LBP at prevaling market rate.

WHAT IS THE PROOF OF OWNERSHIP OF THE Pag-IBIG HOUSING BONDS?

An investor will be issued a Pag-IBIG Housing Bond certificate by the DBP Trust Services.

CAN THE INVESTOR SELL THE BONDS EVEN BEFORE THE MATURITY?

Yes. Since the Bonds are negotiable, an investor can sell these to other interested investors through the DBP or LBP even before maturity.

HOW CAN THE BONDS BE REDEEMED UPON MATURITY?

The Facility Agent shall remit the maturity value to LBP and DBP to further credit to the bondholders' respective deposit account maintained either with LBP or DBP.

WHERE AND HOW CAN ONE PURCHASE THE BONDS?

An investor can purchase the Bonds from selected DBP or LBP branches nationwide.

Requirement are as follows:

For individual investors

• Duly accomplished Application to Purchase Pag-IBIG Housing Bond
• TIN and 2 valid IDs ( bearing photo and signature) Cash or authority to debit deposit account either with LBP or DBP
• Manager's check

For corporations

• Copies of SEC registration, Articles of Incorportaion and By-laws
• Pertinent board resolution authorizing the purchase of the Bonds indicating the authorized signatories and the specimen signature card

Investors will also be required to open a deposit account either with DBP or LBP to facilitate crediting of the interests and the principal upon maturity of the Bonds.

source: www.pagibigfund.gov.ph