MASS HOUSING developer 8990 Holdings, Inc. is planning an issuance of up to P9-billion fixed rate notes to refinance existing bonds maturing by the end of the year.

In a disclosure to the exchange on Wednesday, 8990 said its board of directors has approved offering peso-denominated notes with a base size of up to P5 billion and an oversubscription option of up to P4 billion.

The plan is to sell the notes only to qualified institutional buyers, which means it would not require registration with the Securities and Exchange Commission.

“The fixed rate notes are intended to pay off our 5-year bonds due in October,” 8990 Investor Relations Officer Patricia Victoria G. Ilagan said in a text message to BusinessWorld.

8990 has tapped BDO Capital & Investment Corp. as the sole issue manager, lead arranger and sole bookrunner, and RCBC Capital Corp. as co-arranger for the planned offering.

“The final terms of the notes will be determined after the bookbuild process and prior to the issuance thereof. The company shall provide the necessary updates regarding this in due course,” it said.

The notes will be listed at the Philippine Dealing & Exchange Corp. (PDEx).

8990 currently has three securities listed at PDEx: the P8.41-billion bonds maturing in October, P375.5-million bonds maturing in July 2022, and P218.91-million bonds maturing in July 2025.

In the first half of the year, 8990 recorded a 47% drop in attributable net income to P1.48 billion, as its revenues fell 30% to P4.91 billion. In a regulatory filing, it said the decline was due to the lockdown to contain the coronavirus pandemic, which hampered its business operations and sales especially in the second quarter. — Denise A. Valdez