Social Housing Finance Corporation (SHFC), the lead government agency mandated to undertake socialized housing for low-income families, is securitizing its mortgage portfolio to generate additional funding for the implementation of its flagship initiative, the Community Mortgage Program (CMP). The undertaking will also give property developers more options to comply with the mandatory 15 percent balanced housing requirement.
SHFC President Atty. Arnolfo Ricardo Cabling led the signing of agreements with partner-agencies for the upcoming issuance of the CMP BALAI Bonds in a ceremony held in Makati City on February 20. The event was attended by SHFC Executive Vice President Atty. Junefe Payot, SHFC Securitization and Funds Generation OIC-Manager Atty. Ann Margarette Vista, and Department of Human Settlements and Urban Development (DHSUD) Asec. Leira Buan. Also present were National Home Mortgage Finance Corporation (NHMFC) President Felixberto Bustos, Jr., Land Bank of the Philippines Treasury and Investment Banking Sector Executive Vice President Carel Halog, and PwC-Isla Lipana & Co. Executive Director Cheryl de Guzman.
In offering the bonds, SHFC will play the role of an issuer. Under the deals, PwC-Isla Lipana & Co. will serve as the portfolio auditor, while Puyat Jacinto & Santos and the Development Bank of the Philippines will function as the transaction counsel and tax advisor, and special purpose trust, respectively. The Philippine National Bank will act as the trustee, registrar, and paying agent, while the Philippine Rating Services Corporation will be the rating agency.
The ceremony came after SHFC signed a memorandum of agreement with the Land Bank of the Philippines and NHMFC in May 2019 to be the CMP BALAI Bonds sole arranger, and advisor and program manager, respectively.
Based on the project roadmap, SHFC is targeting to issue the bonds in August, coinciding with the 32nd anniversary of the CMP. The program, wherein organized communities can avail to purchase the land they occupy or would like to relocate to, has benefited more than 350,000 families through over P16 billion in loan assistance since its inception in 1988.