NHMFC lists P300M 'Bahay Bonds' on PDEx


Posted at Aug 17 2012 05:31 PM | Updated as of Aug 18 2012 01:31 AM

MANILA, Philippines - The National Home Mortgage Finance Corporation (NHMFC) listed P300 million "Bahay Bonds 2" on the Philippine Dealing & Exchange Corp. (PDEx), Friday.

Vice President Jejomar C. Binay said this is first ever retail residential mortgage backed securitization in the Philippines and the first ever securitization to be listed in PDEx.

He noted there is "very strong" demand for the Bahay Bonds with the P300 million Class A senior notes being oversubscribed by 34%.  The Bahay Bonds 2 are five-year residential mortgage backed securities due 2017.

Through the Bahay Bonds, NHMFC has raised P420 million for the additional purchase of secondary mortgages.

With the sovereign guaranty of Philippine government, BB2 Class A Senior Notes are guaranteed by the Home Guaranty Corporation and bear a 4.8% interest rate which makes the bonds higher than most interest rate on bank deposits.

Philippine Ratings Services Corp. (PRS) assigned a PRS Aa Rating for Class A Senior Notes, reflecting a high quality instrument with very low credit risk.

The NHMFC will use the proceeds of the Bahay Bonds 2 debt sale to buy more housing loans to provide the lending firms with liquidity and provide more loans to their clients.
The NHMFC is the secondary mortgage institution established to develop and provide a secondary market for home financing institutions.