The National Home Mortgage Finance Corporation (NHMFC) said it has completed its seventh securitization offering, raising P1.3 billion in bonds.
The bond issuance, called “NHMFC Bonds 2024,” received a strong credit rating from the Philippine Rating Services Corporation (PhilRatings).
PhilRatings assigned a final issue credit rating of PRS Aa minus to the P1.0 billion Class A senior notes, which have a coupon rate of 4.9654 percent. The P300.3 million Class B subordinated notes were rated PRS Baa. The outlook for both ratings is stable.
Obligations rated PRS Aa are considered high-quality and have a very low credit risk, while those rated PRS Baa have adequate protection parameters. A stable outlook suggests the rating will likely be maintained over the next 12 months.
The NHMFC Bonds 2024 is the corporation’s second-largest bond issuance to date. The bonds are backed by 1,658 long-term, low-delinquency residential loans and are aimed at supporting the country’s housing sector.
In a signing ceremony, NHMFC president Renato Tobias said the bond issuances help Filipino families achieve secure and sustainable homes.
“More than a financial instrument, the NHMFC Bonds symbolize our collective commitment to making homeownership more accessible and affordable for many Filipinos across the nation,” Tobias said.
NHMFC acting executive vice-president Maria Luisa Favila noted that while securitization is not yet widely accepted in the local capital market, the international market has started to take notice of NHMFC due to an improved sovereign rating outlook.
“The corporation will continue to strive to have a new pool of investors and pool of assets and issue different financial instruments to help in the funding requirements for housing,” Favila said.
Key partners in the transaction included the Development Bank of the Philippines, Landbank of the Philippines, Philippine National Bank, MOSVELDTT Law Offices, Philippine Rating Services Corporation, and MOORE Roxas Tabamo and Co.
