NHMFC securitizes Php 270-million worth of residential loans

MOSVELDTT is the transaction counsel and tax advisor in the third wave of securitization initiated by the National Home Mortgage Finance Corporation (NHMFC) dubbed as BALAI Bonds

Under the securitization, a select pool of 2,310 long-term secured residential loans acquired by the NHMFC, each with principal loan value not exceeding Php3-million was transferred on a true sale basis to a Special Purpose Trust administered by Development Bank of the Philippines – Trust Banking Group. In order to fund the purchase of the Assets, the SPT issued Asset Backed Securities worth Php270,251,008.08, consisting of Class A Senior Notes worth Php175,000,000.00 and Class B Subordinated Notes worth Php95,251,008.08.

In his speech during the signing ceremony of BALAI Bonds 1 held last 5 December 2019, NHMFC President Dr. Felixberto U. Bustos, Jr. shared that the issuance took seven (7) years in the making. The last issuance, being Bahay Bonds 1, took place in 2012.

BALAI Bonds 1 was also participated by the Philippine National Bank, Land Bank of the Philippines, and PhilRatings.

Parties to BALAI Bonds 1 with MOSVELDTT Lawyers Aldrich U. Dy, Lalaine L. Hablado-Reyes, and Rebecca Anne U. Flores. The MOSVELDTT team for BALAI Bonds 1 also include Jerry S. Coloma III, Nicholas Felix L. Ty, and Sheena Marie T. Morales (not in photo).