NHMFC’s securitization offering gets SEC OK

MANILA, Philippines — The Securities and Exchange Commission (SEC) has approved more options for developers to comply with the Balanced Housing Development Program (BHDP).

BHDP is a program for developers to contribute to socialized housing projects, as mandated by the Urban Development and Housing Act of 1992.

Housing Secretary Jose Rizalino Acuzar said the SEC has approved the National Home Mortgage Finance Corp.’s (NHMFC) asset-backed securities (ABS), a securitization offering available for housing developers.

Acuzar said that with the ABS, developers could enjoy a convenient, risk free manner of compliance to the government’s socialized housing program.

“Investment in this asset-backed securities entails full compliance to the Balanced Housing Development Program. This is in contrast to other modes of available compliance, such as the Incentivized Compliance Program that only merits provisional compliance to the BHDP, subject to the completion of the development project,” Acuzar said.

He said investment in NHMFC’s ABS would a great opportunity for developers in the private sector to contribute and participate in the Pambansang Pabahay Para sa Pilipino Program, as funds generated by the compliance ABS would  be directly used for the development of new socialized housing projects.

“In the NHMFC’s compliance ABS, developers are ensured that their regulatory requirements under the law are complied with from the onset of their projects while at the same time contributing to the intensified efforts to give housing to more Filipino families,” he said.

NHMFC launched the compliance offering last Dec. 5 with state-owned Land Bank of the Philippines as arranger for the issuance.

A total of P570 million worth of securities will be issued on Dec. 15 to as much as 19 qualified investors and real estate developers.

Acuzar said this is Department of Human Settlements and Urban Development’s way, through NHMFC, to attract private capital to the housing industry.

NHMFC president Renato Tobias, for his part, sees the compliance ABS as NHMFC’s contribution to the Pambansang Pabahay Para sa Pilipino Program of the government.

In the said program, the government aims to provide one million homes a year until 2028.

“As a key shelter agency under the leadership of Secretary Acuzar, NHMFC fully commits to contribute in making the Pambansang Pabahay Para sa Pilipino Program a reality through its function as the country’s premiere secondary mortgage institution,”  Tobias said.