MASS housing developer 8990 Holdings Inc. said on Monday it has sold P11-billion worth of receivables this year after signing a P3-billion purchase arrangement with BDO Unibank last week.
8990 President and Chief Executive Officer Januario Jesus Atencio 3rd earlier said the company was targeting to sell P11-billion worth of Contracts To Sell (CTS) receivables this year. The receivables form part of its P19-billion CTS portfolio.
In a disclosure to the Philippine Stock Exchange, 8990 said it signed a Memorandum of Agreement with BDO Unibank Inc. last week for the bank’s purchase of P3-billion worth of CTS receivables from 8990.
The transaction brings 8990’s CTS purchase arrangements to a total of P11 billion.
Aside from the purchase by BDO, 8900 has also sold CTS receivables to other banks such as to BPI Family Bank worth P1 billion; Security Bank worth P2 billion; and Chinabank worth P5 billion.
“Thus, our target for 2016 to secure the CTS Purchase worth P11 billion has been secured,” 8990 said.
Under the terms of the agreement with BDO, the receivables are “without recourse and based on outstanding principal balance” and include a collection fee of 3.5 percent as well as an Optional Marketing Agency Agreement for cancelled accounts.
With P11-billion worth of CTS receivables sold, the company still has P8 billion in its CTS portfolio, half of which will go to the Home Development Mutual Fund or Pag-IBIG.