VILLAR-LED Vista Land & Lifescapes, Inc. (VLL) is planning to raise as much as P40 billion from the domestic bond market, as it ramps up the expansion of its residential and commercial projects.
The listed property developer told the stock exchange yesterday it has filed an application with the Securities and Exchange Commission (SEC) for the shelf registration of fixed-rate retail bonds amounting up to P30 billion.
These bonds will be issued in tranches over a three-year period starting on the effective date of registration.
Vista Land also filed a separate application to offer and issue fixed-rate bonds amounting to up to P10 billion. The issuance will consist of P5 billion with an oversubscription option of up to P5 billion.
“Of the Offer Bonds, P5 billion will be issued as the last tranche of the existing P20-billion shelf program of the Company, while up to P5 billion shall be issued out of the New Shelf Bonds,” it said.
Vista Land has a P20-billion shelf registration approved by the SEC in July 2018.
The company’s board of directors has given the management authority to determine other details of the bond issuance plan, such as the terms and conditions of the offer.
In July, Vista Land was able to raise P14.5 billion through its five-year corporate notes which had a fixed rate of 7.125% every year. The returns are supposed to finance the expansion of the company’s commercial projects and other general corporate purposes.
Vista Land is allocating P40 billion for capital expenditures this year, the bulk of which is meant to help widen its residential and commercial portfolio.
The company booked an attributable net income of P5.7 billion in the first six months of the year, up 11% from a year ago, as its consolidated revenues rose 11% to P23.4 billion. — Denise A. Valdez