8990 sells housing receivables
Mass housing developer 8990 Holdings Inc. is selling up to P5 billion worth of contract to sell receivables to a special purpose company to support its continued expansion.
The company has mandated China Bank Capital Corp. to arrange and underwrite the securitization of asset-backed securities (ABS).
?This is a trailblazing moment for 8990 as well as the mass housing sector.
The P5 billion securitization mandate given to China Bank is the largest securitization deal ever to be assembled in the Philippines and it opens up a whole new horizon for housing finance in the country,? said 8990 president and CEO Januario Jesus Atencio.
Under the proposed securitization, the special purpose company will issue three tranches of ABS to investors. The SPC shall use the cash flows from the receivables to make principal and interest payments to the ABS investors until each tranche is completely paid in order of seniority.
Last month. 8990 inked a deal to sell P2 billion worth of in-house CTS receivables with Security Bank Corp.