Vista Land bonds get triple-A rating

MANILA, Philippines—Leading housing developer Vista Land and Lifescapes Inc. has obtained a triple-A rating from local credit watchdog Credit Rating and Investors Services Philippines Inc. (CRISP) in relation to its planned bond debut of as much as P5 billion.

CRISP gave VLL’s proposed debt issuance an issuer rating of ‘AAA’ rating with a stable outlook.

In assigning the rating, CRISP noted VLL’s market leadership in the low-cost and affordable housing segment and cited its excellent financial performance, strong management team and a successful operating model.

The company has built more than 250,000 homes in 34 provinces, 73 cities and municipalities throughout the Philippines.

CRISP also favorably noted VLL’s operating model, noting that this could successfully replicate large-scale housing community projects in its huge landbanked properties widely spread throughout the country.

On financial performance, CRISP noted that in the last five years, the company recorded a 22-percent average net income growth. During the same five-year period, VLL’s Ebitda (earnings before interest, taxes, depreciation and amortization) margins averaged 36 percent while its gross margins averaged 51 percent.

CRISP said it believed that the company’s leading position in the low-cost and affordable housing market segments would be maintained as a result of its strategic landbanking decisions and the growing demand in these sectors.

VLL is looking at a base offering size of P3 billion but with an option to increase the allotment by another P2 billion in case of strong demand for the offering.

The maiden bond offering was cited as part of VLL’s overall strategy to diversify its sources of funding. The proceeds will partly finance the commercial developments of its subsidiaries.—Doris C. Dumlao