8990 Holdings raises P1.3 billion to pay old debts

MANILA, Philippines — Low-cost homes developer 8990 Holdings Inc. has raised P1.3 billion from enrolled corporate notes mostly to repay debts falling due soon.

In a disclosure to the stock exchange on Thursday, the firm behind housing brands Deca Homes, Urban Deca Homes and Urban Deca Tower said the corporate notes will be payable in 2 years, including a coupon rate of 4.05% per year.

“The proceeds from this transaction will be primarily used to partially finance the payment of existing indebtedness of the Company,” 8990 Holdings said.

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The bonds no longer required clearance from the Securities and Exchange Commission, but 8990 Holdings still proceeded with enrolling the securities at the Philippine Dealing & Exchange Corp., the fixed income bourse, so they could be traded.

“Despite the current environment, the company continues to deploy cash to operations and grow its business in key regions across the Philippines,” Richard Haosen, company treasurer and director, was quoted as saying in the statement.

With its offering, 8990 Holdings became the latest company to tap the debt market to arrest cash flow problems brought by struggling operations during the pandemic. The firm booked a consolidated net income of P1.48 billion in the first half, down 47% year-on-year which the company attributed to lower sales and limited operations during the lockdown period.

Del Monte to raise P5 billion

In a separate dislosure also on Thursday, canned fruits manufacturer Del Monte Pacific Ltd. told the stock exchange about its plan to raise P5 billion through the sale of corporate bonds, which could be upsized by P2.5 billion if met with high investor demand.

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On Thursday, shares in 8990 Holdings ended flat at P6.50 each while Del Monte inched up 0.85% to close at P4.73.

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Article and Photo originally posted by PhilStar last October 15, 2020 4:57pm and written by Ian Nicolas Cigaral.

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