8990 Holdings sells PhP1-B receivables for homes to BPI Family Savings Bank

MANILA, Oct. 29 (PNA) — Mass housing developer 8990 Holdings Inc. has signed a deal to sell PhP1-billion receivables for homes to thrift bank arm of the Ayala-led Bank of the Philippine Islands (BPI).

In a disclosure to the Philippine Stock Exchange, 8990 Holdings said it signed a memorandum of agreement (MOA) with the BPI Family Savings Bank for the purchase of its in-house contract to sell (CTS) receivables.

The arrangement carries a limited recourse period of only two years. The actual date of purchase shall be on Friday.

“The agreement with BPI Family is a significant milestone for 8990 as it signals the growing acceptability of 8990 Holdings’ CTS receivables with the banking sector, paving the way for the creation of alternative housing finance in the private sector not only for 8990 but also for the entire mass housing sector,” said company president Januario Jesus Atencio III.

Under the arrangement, BPI Family will immediately process the conversion of the CTS into a mortgage loan under its Kayang-kaya Pabahay Program.

The recourse ends once the CTS is converted into a mortgage loan even before the two-year recourse period lapses.

Atencio expects to pursue similar arrangements with other banks and financial institutions in the near future. (PNA)