Megaworld Corp. told the local bourse on Thursday it has signed a P5-billion financing deal with Banco de Oro Unibank Inc. (BDO) that will allow it to sell receivables from previous property sales and provide easy credit for its new buyers.
In a statement, Megaworld said the financing scheme will pump extra liquidity into the company, enabling it to fast track its residential developments.
The property developer did not specify, however, if the receivables it was selling were delinquent or whether they would be sold to BDO at face value or at a discount.
BDO, on the other hand, will be able to build up its consumer loan portfolio through access to Megaworld's rich pool of clients who want to tap home loans.
"We have actively collaborated with Megaworld to create an innovative way of providing receivable and consumer mortgage financing," said BDO president Nestor Tan.
"This is a good example of what a strong partnership with BDO can produce. Our leading position in providing mid-income housing fits well with BDO's strategy of growing its residential mortgage portfolio," Megaworld chairman Andrew Tan noted.
Megaworld, one of the country's biggest residential condominium developer and office builder, continues to be optimistic about the property market, with its reservation sales projected to reach P24 billion by the end of the year.
The company has one of the most extensive properties in Metro Manila and is a leading provider of mid-income housing in the country.
It is targeting to hit a record-high profit of P3.8 billion for 2008.