Pueblo de Oro expanding projects with P.5-billion corporate note issue

The leading real estate development in Northern Mindanao will use the proceeds of a P.5-billion corporate note to expand existing projects in its 370-hectare township in Uptown Cagayan de Oro, Cebu and Central Luzon.

"It´s a very promising year," noted Guillermo D. Luchangco, chairman and chief executive officer of Pueblo de Oro Development Corporation (PODC) shortly after executing the P200-million first tranche of its P500-million corporate note issue with the Philippine Veterans Bank at Hotel Koresco. "We´re coming out of a recessionary period around the world, so we´re quite bullish about our prospects for the year."

Despite fears of a slowdown brought by the global financial malaise, Luchangco said the real estate business in Cagayan de Oro as well as other locations in the country was relatively unaffected. In fact, he said PODC experienced its best performing year ever in 2009 despite all the constraints.

"There is a huge backlog of unfulfilled demand in the income levels of housing we´re targeting," noted Rommel M. Leuterio, president of ICCP which has a controlling stake in PODC.

Investment and Capital Corporation of the Philippines (ICCP) and Multinational Investment Bancorporation (MIB) are joint issue managers of the issue, with PVB-Trust Department as the facility and paying agent.

Proceeds of the first tranche will be used for the expansion of the Forest View, Golden Glow II, and The Courtyards, the first horizontal condominium in Mindanao, said Rodolfo L. Menes, vice president and general manager, PODC.

PODC is the owner and developer of the Pueblo de Oro Township in Cagayan de Oro, which includes a world-class championship golf course designed by Robert Trent Jones II, housing projects covering the entire spectrum of income levels, SM Cagayan de Oro, Xavier University, the first IT park in Mindanao and the St. Francis Xavier Parish Church of the Cagayan de Oro Archdiocese.

Philippine Veterans Bank was represented in the signing by Ricardo Balbido, Jr., president, and Severo C. Leagogo, executive vice president. Also present during the signing rites were Lourdes C. Cristobal, president, (MIB); and Ma. Milagros Campomanes-Yuhico, vice president and trust officer, PVB.

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photo caption: Philippine Veterans Bank President Ricardo Balbido, Jr. and Pueblo de Oro Chair Guillermo D. Luchangco exchanges copies of the First Tranch of PODC's P.5-Billion Corporate Issue at Koresco Hotel, Feb. 12, 2010 in Cagayan de Oro City. (photo by Mike Banos)