A UNIT of Villar-led property developer Vista Land & Lifescapes Inc. has raised $125 million from the issuance of new debt notes due 2022, raising the curtain in the Southeast Asian US dollar bond market this year.
The offshore bonds were issued by subsidiary VLL International Inc. by re-opening to the market the existing 7.375 percent notes due June 2022 – which in turn is part of the property developer’s medium term note program. The new bonds were issued t a cash price of 102.000, representing a yield of 6.979 per cent per annum, Vista Land told the Philippine Stock Exchange on Thursday.
This transaction represents the first US dollar bond offering from an ASEAN (Association of Southeast Asian Nations) corporate this 2016 and the first non-China US dollar high-yield bond out of Asia this year. Vista Land thus re-opened the international debt market for the Philippines real estate space, setting a benchmark for further issuances.
Following a three-day roadshow in Singapore, Hong Kong and London, Vista Land transcended the market volatility witnessed in the first few weeks of the year and against a challenging environment, found a window of opportunity to execute this bond deal.
The deal was well-received with offshore investors receiving 60 percent of the allocation, thereby diversifying Vista Land’s investor base.
Vista Land said it would use the proceeds of the issuance to fund capital expenditures and for general corporate purposes.
DBS Bank Ltd. and HSBC acted as joint lead managers and bookrunners on the transaction while BDO Capital & Investment Corp. and China Bank Capital Corp. acted as joint domestic lead managers
Vista Land is the largest subdivision homebuilder in the Philippines with a 40-year track record. It recently acquired affiliate mall developer and operator Starmalls Inc., aiming to benefit from the synergies and enhanced scale from the integration. This is seen strengthening Vista Land’s position as a top four integrated property developer in the country.