Philippines’ 8990 Holdings aims to begin bond offering at end of April

By Marisa Wong

Madison, Wis., March 17 – 8990 Holdings, Inc. is moving ahead with its previously announced corporate bond offering. The company is looking to start the offering at the end of April and issue the bonds in May, according to press releases from BDO Capital and SB Capital.

In February 8990 Holdings announced plans to issue PHP 5 billion of fixed-rate corporate bonds.

The deal will include a PHP 4 billion greenshoe.

BDO Capital will be one of the lead underwriters, and SB Capital will be a joint lead underwriter and joint issue manager.

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 prior press release that “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.”

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

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