MANILA, Philippines - The National
Home Mortgage Finance Corp. (NHMFC) listed yesterday P300 million worth of
five-year Bahay Bonds Series 2, or residential mortgage backed securities on
the Philippine Dealing and Exchange Corp. (PDEX), the country’s secondary market
platform.
During yesterday’s listing, Vice
President and Housing and Urban Development Coordination Council chairman
Jejomar Binay said the Bahay Bonds Series 2 or BB2 are safe and profitable
investment options for retail investors.
Binay said the retail bonds represent
the first retail housing debt, which is backed by an asset pool of high quality
loans from NHFMC’s assets.
According to the NHMFC website,
investors can buy the bonds for as low as P5,000 at a rate of 4.80 percent a
year. The bonds have better interest rates than other comparable investment
instruments, the NHMFC also said.
Furthermore, the tax-exempt bonds may
be used as collateral to the lending facilities of the Land Bank of the
Philippines (Landbank), a government financial institution.
The bonds were offered to the public
from July 26 to Aug. 7 through the different selling agents.
Yesterday’s listing of the bonds in
PDEX will enable investors to sell their bonds in the secondary market through
the selling agenty where they bought the Bahay Bonds.
The bonds are rated Aa by the
Philippine Rating Securities Corp. and has several levels of credit
enhancement: express spread and reserves and senior-subordination structure,
NHMFC said.
As an added sweetener, the bonds are
guaranteed by the state-owned Home Guaranty Corp.
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