8990 Holdings readies notes offer

MANILA, Philippines - Mass housing developer 8990 Holdings Inc. said it is on track with its planned issuance of P5 billion worth of corporate notes with an oversubscription option of up to P4 billion late next month.

 “8890’s bond offering is moving as planned and there is already a lot of interest. We will file with the Securities and Exchange Commission (SEC) and hope to start the offer starting end of April,” said BDO Capital and Investment Corp. president Ed Francisco.

The listed low-cost housing builder intends to raise up to P9 billion from the offering of debt papers to selected institutional investors.

“It has come to our attention that there are rumors circulating regarding the postponement of the P5 billion bond issue of 8990 Holdings,” said SB Capital president Ricky Galang.

 “As joint issue manager and joint lead underwriter of the issue, we would like to state that the bond issue is on track for a May issue date and we see no reason for any changes in the status or timing of the bonds,” Galang said.

8990 Holdings president and chief executive officer Januario Jesus Atencio earlier said the bond offering would allow the company to convert its short-term debts into long-term debts.

 “BDO is fully behind this deal and will make the bond available to our clients through our extensive distribution network,” Francisco said.

BDO Capital, SB Capital, First Metro Investment Corp., and China Banking Corp. have been mandated as joint issue managers for the offering.

8990 Holdings surpassed its 2014 profit guidance of P3 billion as net income last year went up 52 percent to P3.3 billion.

This year, the firm is aiming to grow its net income between 15 percent to 21 percent to about P3.8 billion to P4 billion.