8990 plans up to P9B bond offer

MASS housing developer 8990 Holdings Inc. plans to raise as much as P9 billion in fresh funds for expansion from a retail bond offering.

In a disclosure to the Philippine Stock Exchange on Tuesday, 8990 – which trades under the ticker HOUSE – said its board of directors had approved the issuance of P5 billion in registered corporate notes, with a potential for an oversubscription in the amount of P4 billion.

The board also authorized 8990 to appoint local investment houses BDO Capital and Investment Corp. and First Metro Investment Corp. as joint issue managers and joint lead underwriters for this offering.

The offering and its terms therein will be subject to the approval of the Securities and Exchange Commission.

With the local financial system awash with cash and interest rates at historically low levels, many corporations find it attractive to raise funds from the debt market.

Meanwhile, the board also approved 8990’s investment in a new or existing subsidiary which will engage in the provision of cable and Internet services to its housing developments. This seeks to expand the service offerings of the company.