November 23, 2017 | MANILA, PHILIPPINES

Villar-led Vista Land prices P5-B retail bond offer

VISTA LAND and Lifescapes, Inc. has finalized the interest rates for the P5-billion fixed-rate retail bonds it plans to issue before the end of the month.

In a disclosure to the stock exchange on Monday, the Villar-led property developer announced a 5.7512% per annum interest rate for the Series A bonds that will mature in seven years or by 2024. Meanwhile, the Series B 10-year bonds due on 2027 will have an annual interest rate of 6.2255%.

The listed firm has allotted P3 billion for the principal amount of the offer, with an over-allotment option of P2 billion.

The offer represents the first tranche of the company’s P20-billion bonds filed under the shelf registration program of the Securities and Exchange Commission.

Vista Land will be offering the bonds from July 18-27, tapping China Bank Capital Corp. as the offer’s sole underwriter. The bonds will then be listed and traded at the Philippine Dealing and Exchange Corp. starting on Aug. 4.

The bonds have been assigned an “AAA” issuer rating by local debt watcher Credit Rating and Investors Services Philippines, Inc. (CRISP). This indicates a stable outlook for the company.

In assigning the rating, CRISP cited the company’s leadership in the low-cost and affordable housing market, financial performance, the strength of its management team, as well as its successful operating model.

Vista Land has housing developments in 111 cities and municipalities spread out across 44 provinces in the country, totaling to around 300,000 homes built since the company started operating in 1977.

The company has five residential business units, namely Brittany Corporation, Crown Asia Properties, Inc., Camella Homes, Inc., Communities Philippines, Inc., Vista Residences, Inc. Its unit Starmalls, Inc. operates malls located in Mandaluyong and Muntinlupa.

Vista Land looks to net a maximum of P4.93 billion with the offer, the proceeds of which will be used to finance the construction and completion of the Evia Lifestyle Center, Vistamall Malolos, as well as for general corporate purposes.

Evia Lifestyle Center is the commercial component inside Vista Land’s Evia, a 600-hectare development that spans Metro Manila and Cavite set to include three master-planned residential estates developed by Vista Land’s units.

In 2017, Vista Land allotted a capital expenditure of P35.3 billion for its expansion into 100 new cities, as well as for increasing its leasing business.

Earnings of the company showed an 11% increase in the first quarter of 2017 to P2.3 billion.

Shares in Vista Land rose by two centavos or 0.34% to close at P5.96 apiece on Monday. -- Arra B. Francia