8990 Holdings Inc.’s aim has been helping the country bridge the ever-widening housing gap.

Lister firm 8990 Holdings signed a purchase agreement with Fillmore Resources and Holdings Inc for the sale of P10 billion contract-to-sell (CTS) receivables. The transaction is financed by the Philippine National Bank, one of the country’s largest private universal banks.

This brings the company’s total receivables sold to P25 billion since it began accelerating the sale of receivables to fund its aggressive growth plans through internally generated cash and lower its reliance on debt.

The company is spending P4 billion in various projects nationwide this year. Next year the plan is to double its capital expenditure to support its goal of hitting P20 billion in 2020 as its largest project, Urban Deca Homes Ortigas, starts to contribute to 8990’s topline.

In July, 8990 Holdings launched its largest Metro Manila project, the Urban Deca Homes Ortigas along Ortigas Avenue Extension. Once completed, there will be a total of 19,046 units. Just two months from the launch, the company reported sales reservations equivalent to P1.5 billion.

8990’s receivables portfolio as of September 2019 was at P20.9 billion. This is expected to decline further following the sale of the P5 billion CTS receivables and upon the completion of the company’s P2.5 billion securitization deal by yearend.

Once launched, 8990’s securitization deal will open doors to sustainable housing finance which will allow developers to focus on the business of building homes. The company’s securitization initiative was spearheaded by the late 8990 president & CEO Willie Uy. This will be the first private sector led securitization deal in the Philippines.

For the past 16 years, 8990 Holdings Inc.’s aim has been helping the country bridge the ever-widening housing gap. The company has branches in ten high-growth areas across the country with thirteen ongoing projects nationwide priced below P2 million. The minimal upfront payment and manageable monthly amortization payments is especially attractive to the country’s growing middle class.

Securitization will allow 8990 to access funding through the conversion of cash flows from its CTS receivables into asset backed securities that would provide investors high yields.