VISTA LAND & Lifescapes, Inc. (VLL) has raised P14.5 billion through a corporate notes facility to finance the expansion of its commercial projects.
In a disclosure to the stock exchange Monday, the Villar-led property developer said the five-year corporate notes carry a fixed rate of 7.125% annually.
The listed firm signed a corporate notes facility agreement with PNB Capital & Investment Corp. as mandated lead arranger and bookrunner. Its subsidiaries, Brittany Corp., Crown Asia Properties, Inc., Camella Homes, Inc., Communities Philippines, Inc., Vista Residences, Inc., and Starmalls, Inc. acted as subsidiary guarantors.
“The proceeds of the corporate notes facility will be used to fund the company’s 2019 capital expenditures for commercial property projects, and to fund other general corporate purposes,” the company said.
VLL has committed to spend P40 billion in capital expenditures this year for the expansion of its residential and commercial projects. The company last year hit its target to have 1.3 million square meters (sq.m.) in leasable area for its commercial space business.
The company looks to end 2020 with a total of 60 malls, from the 31 it had by the end of 2018. It earlier changed the name of subsidiary Starmalls, Inc. to Vistamalls, Inc. in line with its mall expansion. The name change is still pending with the Securities and Exchange Commission.
Meanwhile, the company has about P60 billion worth of projects to be launched this year, about P10.8 billion of which have already been unveiled during the first quarter.
Prior to the corporate notes facility, VLL already has about P20 billion in outstanding debt at the bond market. It has about P5 billion in retail bonds issued in 2014, P5 billion in 2017, and P10 billion in 2018.
VLL reported a net income attributable to the parent of P2.85 billion in the first quarter of 2019, 12% higher year on year, as revenues jumped 14% to P11.44 billion.
The company earlier said it projects a 12-15% growth in both net income and revenues every year until 2020, boosted the positive performance of its core residential business and a 22-25% increase in its leasing business.
VLL is currently present in 147 cities and municipalities across 49 provinces by the end of March.
Shares in VLL dropped 0.65% or five centavos to close at P7.70 each at the stock exchange on Monday. — Arra B. Francia