8990 Holdings Inc plans to take on fresh debt early next year to finance its expansion.
8990 Holdings president Januario Jesus B. Atencio last week said the low-cost mass housing developer may raise at least P5 billion through the issuance of corporate bonds or notes in the first half of 2015.
Proceeds from the debt issuance will fund project development, landbanking initiatives, retirement of higher-interest bearing loans and engineering capacity expansion.
"I have already increased capacity by 33 percent in the third quarter from 8,000 units to 10,500 units. I need to increase to 15,000 units to be safe. I'm trying to hit it by first quarter of next year,” Atencio said.
Early this year, 8990 Holdings raised P9 billion from a follow-on offering that attracted Malaysia’s state investor Khazanah Nasional Berhad and private equity firm TPG Capital (S) Pte.
8990 Holdings entered the local bourse via the backdoor through its takeover of IP Converge Data Center Inc.
8990 Holdings likely grew earnings by 38-48 percent to P3-3.2 billion this year fuelled by strong demand for its residential projects. Revenues are projected to increase to P7.6-7.8 billion, up 41-46 percent from P5.36 billion a year ago.
8990 Holdings had targeted to launch 12 new projects this year, bringing 11,574 units to the market with a total area of 105 hectares. At end-August, the real estate firm had rolled out nine of those developments in the National Capital Region, Cavite, Angeles, Cebu, Iloilo and Davao.
- Interaksyon
