SEC approves securitization plan of 8990

MANILA, Philippines — The Securities and Exchange Commission (SEC) gave its conditional approval to the securitization plan of listed mass housing developer 8990 Holdings Inc.

It also approved 8990’s request for exemption from registration of its securities as the certificates will be issued to not more than 19 investors in the Philippines.

The approval is subject to the filing of the final credit rating support from local debt watcher Philippine Rating Services Corp.

The program covers P2.13 billion in contract-to-sell (CTS) receivables.

Under the securitization plan submitted to the SEC, 8990 Holdings and its subsidiaries, 8990 Housing Development Corp., 8990 Luzon Housing Development Corp., 8990 Davao Housing Development Corp., and Fog Horn Inc., will sell to CBC Assets One (SPC) Inc. receivables from about 2,511 CTS accounts with an original term of up to 25 years.

After the sale, CBC Assets One will issue certificates worth about P2.13 billion backed by the CTS receivables.

The issuance will consist of tranche A certificates worth about P1.59 billion and tranche B certificates worth about P531.3 million to be sold at face value.