The Securities and Exchange Commission (SEC) has considered favorably the securitization plan of 8990 Holdings, Inc. covering P2.13 billion in contract-to-sell (CTS) receivables.
In its October 1 meeting, the Commission En Banc approved the publicly listed mass housing developer’s securitization plan, subject to the fulfillment of certain conditions.
Under the securitization plan, 8990 Holdings and its subsidiaries, 8990 Housing Development Corporation, 8990 Luzon Housing Development Corporation, 8990 Davao Housing Development Corporation, 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.
Following 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.
The certificates are exempt from registration, as they will be issued to not more than 19 investors in the Philippines.
Section 10.1(k) of Republic Act No. 8799, or the Securities Regulation Code, provides for the exemption from registration of securities sold or offered for sale to fewer than 20 persons in the Philippines during any 12-month period.