8990 Holdings to sell P11B in receivables

Leading mass housing developer 8990 Holdings expects to sell more receivables under its in-house financing program to financial institutions, thus ending this year with a lighter portfolio of P10 billion in contract-to-sell (CTS) receivables from P19 billion at end-2015.

In an interview, 8990 Holdings president Jesus Januario Atencio said the company was “about to close” deals to sell about P11 billion in CTS receivables to four banks.

This will leave 8990 Holdings with P8 billion in CTS receivables, of which P4 billion is expected to be taken out by state-controlled Home Development Mutual Fund or PagIBIG.

Such loan takeout – or individual members’ home financing taken over by Pag-IBIG – accounted for around 25 percent of 8990 Holdings’ total business last year.

8990 Holdings’ P19 billion worth of CTS portfolio under its in-house financing program called CTS Gold consisted of around 20,330 accounts.

Under this CTS program, homebuyers are required to shell out as low as 4 percent equity with a five-year rebate of 1.5 percent for prompt payment.

Effective interest rate is 9.5 percent a year.

Qualified homebuyers are those earning at least P35,000 a month while the monthly amortization cap is equivalent to 33 percent of salary.