Philippines’ 8990 Holdings plans PHP 5 billion maiden bond issue

By Marisa Wong

Madison, Wis., Feb. 18 – 8990 Holdings, Inc. announced it plans to issue PHP 5 billion of fixed-rate corporate bonds.

The deal will include a PHP 4 billion greenshoe.

The maiden Philippine Securities and Exchange Commission-registered public offering will target institutional investors as well as retail and high net worth accounts.

The company’s chief executive officer said in a press release, “the principal purpose of the bond floatation is not necessarily to raise fresh capital, but really more to convert our short-term debt into long-term liabilities.

“In the process, we will be able to match our long-term CTS receivables with long-term debt. We note that in raising an optimal amount of debt at low interest rates benefits 8990’s shareholders as well, as it increases returns on equity and it makes our balance sheet more efficient.

“The timing of this bond issuance takes advantage of a low interest rate environment as well as excess liquidity in the market.”

BDO Capital will be one of the lead underwriters for the issuance. The other underwriters were not named in the press release.

8990 is a property developer based in Makati City, Philippines.

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