A unit of property developer Vista Land & Lifescapes Inc. has raised $125 million from the issuance of new debt notes due in 2022.
The offshore bonds were issued by subsidiary VLL International Inc., which reopened to the market existing 7.375-percent notes due on June 2022. This is part of the property developer’s medium term debt issuance program.
This latest transaction represents the year’s first US dollar bond offering from an ASEAN (Association of Southeast Asian Nations) company as well as the first non-China US dollar high-yield bond out of Asia. This allowed Vista Land to reopen the international debt market to the Philippines’ real estate industry, setting the tone for further issuances.
This also comes on the heels of a three-day roadshow in Singapore, Hong Kong and London, which saw Vista Land overcoming market volatility currently affecting major economies abroad.
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 while BDO Capital & Investment Corp. and China Bank Capital Corp. acted as joint domestic lead managers. Doris Dumlao-Abadilla