The Home Development Mutual Fund, also known as the Pag-IBIG Fund, will auction P2 billion in five-year housing bonds tomorrow. The housing bonds are issued by the HMDF to finance its housing loan program.

Both the Development Bank of the Philippines and the Land Bank of the Philippines will serve as the facility agents/trustee banks.

Pag-IBIG Bacolod branch attorney Imelda Gerangaya said yesterday their branch will serve as the receiving center of the original copy of the bid documents from institutions, corporate investors and developers in Bacolod and Negros Occidental.

We will relay the documents to Manila by 3 p.m. the day of the auction, she said.

Those who can invest in housing bonds are both Pag-IBIG members and non-members, Philippine and non-Philippine nationals, developers, and insurance companies.

The bonds are available in denominations of P5,000, P10,000, P50,000, P100,000, P500,000 and P1,000,000, and there is no limit in the amount of purchase.

Pag-IBIG Fund said an investor will be paid on a semi-annual basis a fixed interest rate of 8.0 percent per annum, which is tax exempt by virtue of the Home Guaranty Corp. guaranty. The guaranty of HGC carries with it the unconditional guaranty of the Republic of the Philippines and a debt repayment fund shall be maintained with the Development Bank of the Philippines.*NLG

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