Vista Land offering debt notes to raise P5B

Villar group-led property developer Vista Land & Lifescapes Inc. (VLL) is raising P5.15 billion for expansion via an offering of debt notes to select institutional investors.

VLL is selling 10-year corporate notes at a fixed rate of 6.1879 percent a year, the company disclosed to the Philippine Stock Exchange yesterday.

Unlike retail bonds, which are sold through a public offering and must go through a more tedious regulatory approval process, corporate notes are a quicker fundraising option for top-tier corporations as they are sold to no more than 19 selected institutional investors.

“The proceeds of the facility will be used to pre-fund the company’s 2017 capital expenditures and refinance its existing indebtedness, and for other general corporate purposes,” the disclosure said.

VLL entered into a notes facility agreement with various financial institutions as noteholders: China Bank Capital Corp., the lead arranger, and China Banking Corp.–trust group, the facility agent.

The company’s subsidiaries—Brittany Corp., Crown Asia Properties Inc., Camella Homes Inc., Communities Philippines Inc., Vista Residences Inc. and Starmalls Inc.—were designated subsidiary guarantors.

In the first nine months of 2016, VLL booked an 11-percent year-on-year growth in net profit to P6.4 billion on higher rental income, putting the company on track to end with another “banner” year. Rental income for the period marked a 67-percent year-on-year increase to P3.1 billion as VLL expanded its leasable portfolio.

Consolidated revenue ended the nine-month period at P24 billion, up by 8 percent from the previous year.

VLL is focusing on the development of “communicities” —which it defines as integrated urban developments combining lifestyle retail, prime office space, schools, healthcare, themed residential developments and leisure components.

The company ended September with total consolidated assets of P172.8 billion.