8990 Holdings issues P1.3-B notes for loan refinancing

MASS HOUSING developer 8990 Holdings, Inc. has issued and listed P1.3-billion fixed rate notes at the Philippine Dealing & Exchange Corp. (PDEx).

The company marked its return to the local debt market on Wednesday through a listing ceremony held virtually. The notes have a fixed interest rate of 4.05% per annum and will mature on Oct. 14, 2022.

“[ The proceeds from the offering will] partially finance the payment of existing indebtedness of the company,” 8990 Investor Relations Officer Patricia Victoria G. Ilagan told BusinessWorld via text message.

Prior to Wednesday’ listing, 8990 has three listed securities at the PDEx, which were all issued in 2015: P8.41billion bonds due on Oct. 16, 2020; P375.5-million bonds due on July 16, 2022; and P218.91-million bonds due on July 16, 2025.

The company currently has 20 projects under construction, supported by a capital expenditure allocation of P5 billion to P6 billion.

“We are most delighted to welcome 8990 Holdings, Inc, back for this enrollment of P1.3- billion fixed rate notes. It has been five years since 8990’s debut in the local debt market, and we’re happy to celebrate its return today,” PDEx President and CEO Antonino A. Nakpil said during Wednesday’s program.

“Providing affordable housing has always been at the core of 8990’s operations. Despite the pandemic, our commitment to this remains strong. The company continues to deploy cash to operations and enroll this in key regions across the country,” 8990 Treasurer Richard L. Haosen added.

The listing of 8990’s fixed rate notes on Wednesday brings up the PDEx’s level of outstanding listed securities to P1.48 trillion, up 12% from the same period last year.

The year-to-date total of new listings at the debt market has reached P1.48 trillion, up 12% from end-2019’s P1.32 trillion.

“We do remain lucky that the interest rates asset class has been resilient through this public health crisis, and primary issuance activities have continued smoothly through months of community quarantine,” Mr. Nakpil said.

During the first six months of the year, earnings of 8990 dropped 47% to P1.48 billion, attributable to the ban on construction activities during the height of the coronavirus outbreak. This weighed on the company’s construction completions, and in turn, revenue recognition, which declined 30% to P4.91 billion.

The company hopes that its revenues and income will still reach last year’s levels by end-2020, which were P15.28 billion and P5.58 billion, respectively.

Shares in 8990 at the stock exchange increased nine centavos or 1.40% to close at P6.50 apiece on Wednesday. —