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8990 Holdings inks P5B securitization deal

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8990 Holdings inks P5B securitization deal

/ 01:39 PM April 22, 2016

8990 Holdings Inc., one of the country’s largest mass housing developers, has mandated the investment banking arm of China Bank to underwrite the offering of up to P5 billion worth of securities backed by housing receivables.

“This is a trailblazing moment for 8990 as well as the mass housing sector. The P5billion 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,” 8990 president and chief executive officer Januario Jesus Atencio said in a press statement on Friday.

8990 chair Mariano Martinez signed the mandate with China Bank Capital Corp. president Romy Uyan Jr. and director Manolo San Diego, 8990 Holdings told the Philippine Stock Exchange on Friday.

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Under the proposed securitization deal, 8990 Holdings’ subsidiaries will sell up to P5 billion worth of contract to sell receivables to a special purpose company of China Bank Capital, which will then issue three tranches of asset-backed securities to investors.

The special purpose vehicle will in turn use the cash flows from the receivables to make principal and interest payments to the investors until each tranche is completely paid in order of seniority.

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TAGS: 8990 Holdings, Atencio, China Bank, securitization
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