State-run National Home Mortgage Finance Corp. (NHMFC) plans to issue P2-billion Islamic bonds or “sukuk” in behalf of a Mindanao-based firm, the first time such type of securities will be sold in the country.
The peso-denominated sukuk bonds would likely be issued by the first quarter of next year, NHMFC president Felixberto Bustos Jr. told reporters on the sidelines of the Second Asean Fixed Income Summit Monday.
NHMFC would tap government banks Land Bank of the Philippines and Development Bank of the Philippines as underwriters for the debt issuance, Bustos said.
The NHMFC official said the mortgage-backed securities would securitize Paglas Corp.’s socialized housing project in Datu Paglas, Maguindanao.
Bustos said Paglas’ banana plantations would serve as the asset to back up the bond issuance.
Last February, NHMFC and the company signed a memorandum of understanding for the securitization of the Paglas housing bond program, according to the agency’s website.
“Paglas seeks to develop approximately 2,400 houses that will benefit its employees,” NHMFC said.
The firm has over 2,000 full-time workers. Ben O. de Vera