By Jenniffer
B. Austria | Jul. 14, 2015 at 11:01pm
House and lot
developer 8990 Holdings Inc. said Tuesday it raised P9 billion from a recent
bond sale amid strong demand from investors.
8990 said in
a disclosure to the stock exchange it raised P8.4 billion from the issuance of
five-year bonds and P375.5 million and 218.9 million from the sale of seven-
and 10-year bonds, respectively.
The company
earlier priced the bonds at 6.21 percent per annum for the five-year bonds
maturing in 2020, 6.13 percent for bonds maturing in 2022 and 6.87 percent for
the bonds maturing in 2025.
BDO Capital
& Investments Corp. president Eduardo Francisco said in a text message
total demand for the bonds fetched a little over P10 billion.
The bonds
will be listed with the Philippine Dealing & Exchange Corp. on Thursday.
The bond
proceeds will be used to refinance and restructure the company’s debt into a
long-term fixed-rate debt.
The bonds
were rated AA+ by CRISP ratings agency, which reflects the company’s very
strong capacity to repay debt obligations with adequate resources that can
serve as a buffer to changes in economic conditions, industry shifts’ and
business circumstances.
8990 Holdings
has been rapidly expanding in various parts of the country.
The mass
housing developer said it planned to launch three huge housing developments in
Zamboanga, Bacolod and Bulacan in the second half of the year.
The company
completed 24 mass sousing projects and
sold more than 28,000 units as of March 31, 2015/
It has a
pipeline of nine projects with an existing and available landbank. These projects are scheduled to commence
between 2015 and 2019 and are expected to provide 64,000 units available for
sale.
For this
year, the property firm expects net income to grow by as much as 21 percent to
P4 billion and revenues to increase by 27 percent to P10 billion.
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