Pag-IBIG injects P10B into Megawide housing

The Home Development Mutual Fund (Pag-IBIG Fund) is investing P10 billion in Megawide Construction Corp. to accelerate the government’s Expanded Pambansang Pabahay Para sa Pilipino (4PH) program and address the growing housing demand-supply gap.

In a stock exchange report on Wednesday, the listed firm confirmed that the investment will be made via perpetual preferred shares in Megawide Dreamrise Residences Inc., a wholly owned subsidiary of Megawide, payable in three tranches.

The funds will finance at least 7,000 affordable housing units over the next two to three years.

Strategic partnership

“The partnership with Pag-IBIG is strategic in the sense that it addresses the imbalance between demand and supply in the housing sector,” Megawide chairman and CEO Edgar Saavedra said.

“We believe that we are uniquely positioned and technically proficient to deliver high-quality and cost-efficient housing products that meet the requirements of the 4PH program, with speed and consistency,” he added.

Pag-IBIG, the country’s largest home financing institution, provides savings and housing loans to workers.

In July, it launched a three percent annual interest rate on eligible socialized housing loans for the first five years, extendable for another five years for qualified borrowers.

“This partnership allows us to deliver affordable homes faster and make them more accessible to our members,” Pag-IBIG Fund chief executive officer Marilene C. Acosta said.

“At the same time, it helps us prudently grow and protect our members’ savings through a Board-approved investment that further strengthens our already secure and profitable portfolio. Ultimately, this is about providing meaningful benefits to our members while actively contributing to nation-building. We are happy to support a company that shares our commitment to building a better future for every Filipino,” Acosta added

Megawide targets to launch up to 100,000 housing units under the 4PH program as part of its long-term roadmap, with the first 50,000 units already included in its five-year pipeline across Cavite, including Imus, Dasmariñas and Bacoor.