Pag-IBIG to pour P25 billion-fund for ‘07
by Prix D Banzon
Davao City (12 April) -- As the country’s leading source of shelter financing, Pag-IBIG Fund has infused a fresh fund estimated at P25 billion for CY 2007 inclusive of the P2 billion housing bond flotation that was implemented last month.
Pag-IBIG Fund president and CEO Atty. Romero FS Quimbo in a press statement said the fund will finance some 50,000 housing units estimated at an average of P500, 000 per unit.
He said the flotation of housing bonds is one way of generating funds for shelter financing.
“It is our task in government to provide mechanism for fund sourcing that can be trusted by the private sector. However, the private sector will not put in money to any of the government’s programs unless the channel of disbursement is trustworthy,” he said.
But with the Fund’s track record the market responded vibrantly to the latest housing bonds where issuance was 275 percent oversubscribed with P5.502 billion-worth of bids were tendered priced at five percent per annum which is lower than the prevailing market rate. The secondary market rate for the five-year benchmark T-bonds was recorded at 5.82 percent,” he said.
He said large private institutions like banks and pension funds/workers’ provident funds were among their major investors and the success of the bond auction is an affirmation of the private sector’s confidence on the Fund’s financial stability, liquidity and proven track record to pay its obligations.
The housing bonds issue will help ensure the steady flow of funds for housing and will face the issue of homelessness head on, he said. (PIA XI) [top]