MASS housing developer 8990 Holdings Inc. has set the record straight on its planned P9 billion bond offering, saying the bonds will be issued in May as scheduled.
“The rumors of our bond offering being postponed or cancelled due to weak demand are not true. Actually, we’re working very hard to meet the May launch schedule and to file all the necessary documents at the SEC [Securities and Exchange Commission],” 8990 president Jesus Januario Atencio said.
The three underwriters for the bond issue—BDO Capital Inc., SB Capital Corp. and First Metro Investments Corp. – issued separate statements dousing the rumors.
“That is why the bonds were taken up by the three big known underwriters in the industry. Not because the demand was weak, but because everybody wants to get a piece of it,” Atencio said.
In their respective statements, the three underwriters said they were “now completing the processing of the issue” and that it was “on track” with the May schedule because it had already received “a lot of interest” from the market.
Atencio said the official offer and issue date is still to be determined once the regulatory approvals are obtained.
The bond issue will consist of a P5-billion base offer with a P4-billion overallotment in case of an oversubscription. Proceeds will partly finance the company’s projects this year.
For 2015, the company is targeting revenue of P10 billion and net income of P4 billion with a capital expenditure of P8 billion.
The company reported net income of P3.3 billion in 2014, up 53 percent from a year earlier and higher than the target for the year of P3 billion. Revenues advanced 48 percent to P7.9 billion in 2014 from P5.3 billion a year earlier.
Formerly an IT and telecommunications firm, 8990 Holdings builds low-cost and affordable housing units but is now diversifying into the medium and high-rise residential segment through partnerships with industry players.