8990 taps Security Bank for sale of P2-B receivables

MANILA, Philippines - 8990 Holdings Inc. is selling P2 billion worth of receivables through a partnership with Security Bank Corp.

The company signed Wednesday an agreement with Security Bank for the purchase of its in-house contract to sell receivables amounting to P2 billion.

“We expect the actual sale to take place in April after Security Bank completes its  due diligence,” said 8990 president and CEO Januario Jesus Atencio.

8990 Holdings will act as collecting agent for Security Bank and will be paid a collection service fee based on the collected amount.

“The agreement with Security Bank signifies a serious interest for banks to partner with 8990 and establish for the mass housing sector a viable alternative for housing finance in the Philippines,” Atencio said.

Aside from Security Bank, the listed developer is also pushing for similar arrangements with other banks and financial institutions.

Last October, 8990 signed an agreement with BPI Family Savings Bank for the purchase of P1 billion worth of in-house contract to sell (CTS) receivables.

“For 8990, the purchase of our receivables indicates the growing satisfaction and confidence of banks with regards to the quality of our buyers, our credit evaluation procedures, and our credit and collection platform,” Atencio said.

The CTS portfolio of 8990 jumped 35 percent in terms of value to nearly P19 billion last year.

Likewise, interest income from CTS went up 34 percent to P1.2 billion.