8990 raising P1.3 billion from notes issue

8990 raising P1.3 billion from notes issue

MANILA, Philippines — Mass housing developer 8990 Holdings Inc. has issued P1.3 billion worth of fixed rate corporate notes.

The notes to be listed on the Philippine Dealing and Exchange Corp. are peso-denominated and exempt from registration with the Securities & Exchange Commission.

Furthermore, the notes have a fixed interest rate of 4.05 percent per annum and a maturity of two years.

8990 tapped BDO Capital & Investment Corp. as sole issue manager, placing agent and sole bookrunner.

Proceeds will be used for general corporate requirements.

The SEC earlier approved the securitization plan of 8990 Holdings involving P2.13 billion in contract-to-sell (CTS) receivables.

Under the securitization plan, 8990 Holdings and its subsidiaries, 8990 Housing Development Corp., 8990 Luzon Housing Development Corp., 8990 Davao Housing Development Corp., and Fog Horn Inc., will sell to CBC Assets One (SPC) Inc. receivables from about 2,511 CTS accounts with an original term of up to 25 years.

After the sale, CBC Assets One will issue certificates worth about P2.13 billion backed by the CTS receivables. The issuance will consist of tranche A certificates worth about P1.59 billion and tranche B certificates worth about P531.3 million.

8990 develops subdivisions and medium-rise building (MRB) condominium projects. The company began development of its first MRB mass housing project in Cebu in 2008 and has now expanded in Muntinlupa and in Tondo, Manila.

It has also started building its high rise building projects called Urban Deca Towers in EDSA Shaw and plans to expand in other areas of Metro Manila.