MANILA, Philippines — The Department of Human Settlements and Urban Development (DHSUD), through its attached agency National Home Mortgage Finance Corp. (NHMFC), will issue P570 million worth of securities to at least 19 most qualified investors and real estate developers.
The DHSUD said this was after the Securities and Exchange Commission approved the NHMFC’s asset-backed securities compliance, which allowed it to offer ABS to housing developers.
DHSUD Secretary Jose Rizalino Acuzar said that with the ABS offering, developers can enjoy a convenient, risk free manner of compliance with the Balanced Housing Development Program (BHDP), which mandates developers to contribute to socialized housing projects as provided under Republic Act 7279 or Urban Development and Housing Act of 1992.
“Investment in this asset-backed securities entails full compliance to the Balanced Housing Development Program. This is in contrast to other modes of available compliance such as the Incentivized Compliance Program that only merits provisional compliance to the BHDP, subject to the completion of the development project,” Acuzar said.
He said that investment in the compliance ABS would be a “great opportunity for developers in the private sector to contribute and participate in the Pambansang Pabahay Para sa Pilipino Program, as funds generated by the compliance ABS will be directly used for the development of new socialized housing projects.”
“In the NHMFC’s compliance ABS, developers are assured that their regulatory requirements under the law are complied with from the onset of their projects while at the same time contributing to the intensified efforts to give housing to more Filipino families,” Acuzar said.
The NHMFC launched the compliance ABS offering in a virtual roadshow last Tuesday, hosted by Land Bank of the Philippines, which will serve as the arranger for the issuance.
The NHMFC said a total of P570 million worth of securities would be issued to at least 19 most qualified investors and real estate developers in the coming days.
In a statement, NHMFC president Renato Tobias said the ABS offering is one way for the NHMFC to contribute to the administration’s Pambansang Pabahay Para sa Pilipino: Zero ISF (Informal Settler Family) 2028 Program.”
The program aims to construct one million housing units per year or a total of six million housing units by the end of the term of President Marcos Jr. in 2028.
“As a key shelter agency under the leadership of Secretary Acuzar, NHMFC fully commits to contribute in making the Pambansang Pabahay Para sa Pilipino Program a reality through its function as the country’s premier secondary mortgage institution,” Tobias said.