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8990 Holdings to sell P11B in receivables

/ 12:30 AM February 08, 2016

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.

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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.

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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.

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