The National Home Mortgage Finance Corporation has successfully raised P1.3 billion through its 7th securitization program, NHMFC Bonds 2024, strengthening its role in mobilizing long-term funds for the housing sector.
The issue, backed by 1,658 long-term and low-delinquency residential loans, represents NHMFC’s second-largest bond transaction to date. It drew solid investor confidence, supported by high credit ratings from the Philippine Rating Services Corporation (PhilRatings).
PhilRatings assigned a Final Issue Credit Rating of PRS Aa minus with a Stable Outlook to the P1.0 billion Class A Senior Notes, carrying a coupon rate of 4.9654 percent, while the P300.3 million Class B Subordinated Notes received a PRS Baa with a Stable Outlook. These ratings reflect very low credit risk for the senior notes and adequate protection parameters for the subordinated tranche.
Dual mandate
NHMFC president Renato Tobias said during the signing ceremony that the securitization exercise highlights the corporation’s dual mandate of tapping capital markets while advancing homeownership.
“More than a financial instrument, the NHMFC Bonds symbolize our collective commitment to making homeownership more accessible and affordable for many Filipinos across the nation,” Tobias said.
Acting executive vice president Maria Luisa Favila noted that while securitization remains underutilized locally, international players are taking notice of NHMFC’s transactions, boosted by the Philippines’ improved sovereign rating outlook.
Pools of investors and assets
“The corporation will continue to strive to have a new pool of investors and pool of assets and issue different financial instruments to help in the funding requirements for housing,” Favila said.
Development Bank of the Philippines served as the special purpose trust administrator for the deal, while Land Bank of the Philippines acted as arranger and underwriter. MOSVELDTT Law Offices provided transaction counsel and tax advisory, Philippine National Bank was trustee, registrar and paying agent, PhilRatings handled the credit rating, and MOORE Roxas Tabamo and Co. served as portfolio auditor.