Vista Land, Cirtek debt paper offerings get SEC nod

The Securities and Exchange Commission (SEC) has approved a three-year plan by Villar-led property developer Vista Land & Lifescapes to raise as much as P30 billion from a retail bond offering.

The SEC also approved a plan by electronics manufacturer Cirtek Holdings Philippines Corp. to issue as much as P2 billion worth of commercial papers.In a press statement, the corporate regulator said it would issue the corresponding orders of registration and permits to sell securities upon the compliance of these two companies with certain conditions.

These fixed rate bonds and commercial papers will be listed on the Philippine Dealing & Exchange Corp.

On the P30-billion shelf registration approved by the SEC, Vista Land will issue these in several tranches over a three-year period from the effective date of the registration statement. The first tranche will have a base offering size of P5 billion plus an oversubscription option of up to P5 billion. The bonds will have a tenor of five years and six months from issue date.

Vista Land may redeem in whole the outstanding bonds at 101 percent of the principal amount on the third year or at 100.5 percent on the fourth anniversary of the issuance.

Vista Land plans to issue and list the bonds on Dec. 12 this year, based on the latest registration statement submitted to the SEC.

China Bank Capital Corp., PNB Capital and Investment Corp. and SB Capital Investment Corp. will act as joint issue managers, lead underwriters and bookrunners for the offer. Proceeds from Vista Land’s offering will fund the construction and completion of various malls, redevelopment of existing malls and the construction of condominium projects as well as for general corporate purposes.Meantime, Cirtek plans to issue the commercial papers either in lump sum or in tranches within three years from the date of effectivity of the registration statement.

Commercial papers refer to IOUs or debt paper that mature in a year or less, compared to bonds that mature after more than a year.

Cirtek plans to offer the commercial papers in three series: 91-day (series A) worth P500 million, 182-day (series B) worth P500 million, and 364-day (series C) worth P1 billion.