VISTA Land & Lifescapes, Inc. (VLL) has secured corporate note facilities totaling P7.7 billion to fund its capital expenditures this year.
In a disclosure to the stock exchange on Friday, the Villar-led firm said it signed a corporate note facility consisting of seven-year corporate notes worth P1.7 billion with a coupon rate of 7.4913% per year, and 10-year corporate notes worth P6 billion with a fixed interest of 7.7083% per annum.
With this, VLL entered into a corporate notes facility agreement with China Banking Corp., China Bank Savings, Inc., and Security Bank Corp., which will act as note holders.
Meanwhile, China Bank Capital Corp. and SB Capital Investment Corp. were tapped as joint lead underwriters, with the former as sole issue manager and sole bookrunner.
China Banking Corp.-Trust and Asset Management Group is the issuance’s facility agent, while VLL’s subsidiaries Brittany Corp., Crown Asia Properties, Inc., Camella Homes, Inc., Communities Philippines, Inc., Vista Residences, Inc., and Starmalls, Inc. are the subsidiary guarantors.
“The proceeds of the corporate notes facility will be used to fund the Company’s 2018 capital expenditures for commercial property projects, and to fund other general corporate purposes,” the company said.
The listed property developer has committed to spend P50 billion in capital expenditures this year, ramping up spending from the P37.4 billion it spent in 2017.
The 2018 capex is intended to expand VLL’s leasable space to 1.4 million square meters (sq.m.) by the end of the year, from 1.06 million sq.m. the year before. This includes increasing its shopping mall footprint to 30 by the end of 2018, from 22 at the end of 2017.
VLL is currently present in 141 cities and municipalities across 47 provinces. This year, the company said it is looking to develop 23 projects into what it calls “communicities,” or integrated urban developments that combine lifestyle retail, office, university town, healthcare, residential, and leisure components.
The company’s net income jumped by 13% to P2.6 billion in the first quarter of 2018, supported by a 12% uptick in revenues to P10.1 billion during the same period.
VLL targets to breach the P10-billion mark in terms of net income this year, around 10% higher than the P9.1 billion it generated in 2017. Reservation sales are also expected to hit P72 billion for the year.
Shares in VLL dropped by 0.82% or five centavos to close at P6.05 each at the Philippine Stock Exchange on Friday. — Arra B. Francia