SEC OKs 8990’s securitization plan

MANILA, Philippines — The Securities and Exchange Commission (SEC) has considered favorably the securitization plan of listed mass housing developer 8990 Holdings Inc.

The program covers P2.13 billion in contract-to-sell (CTS) receivables.

Under the securitization plan submitted to the SEC, 8990 Holdings and its subsidiaries, 8990 Housing Development, 8990 Luzon Housing Development, 8990 Davao Housing Development  and Fog Horn, 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 to be sold at face value.

The certificates are exempt from registration as they will be issued to not more than 19 investors in the Philippines.

The SEC approved the plan subject to the fulfillment of certain conditions.

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 along EDSA Shaw.

The company plans to expand in other areas of Metro Manila.

It posted a net income of P1.48 billion in the first half of the year, down roughly by 50 percent.

Gross revenue declined by 29 percent to P4.9 billion.