VISTA LAND and Lifescapes, Inc. (VLL) plans to issue up to P10 billion worth of fixed-rate retail bonds, it told the stock exchange on Monday.
The Villar-led property developer said its board of directors has approved the issuance of peso-denominated fixed-rate retail bonds with a base size of up to P5 billion plus an oversubscription option of up to P5 billion.
The offering will be taken from the company’s remaining P15 billion under its shelf registration at the Securities and Exchange Commission. The company raised P5 billion last year from the first tranche of the P20-billion shelf.
VLL named China Bank Capital Corp. as the issue manager for the offering.
The company earlier said that it plans to raise up to P10 billion from the combination of bank loans and retail bonds to finance its capital expenditures. It committed to spend P50 billion for the expansion of its residential and commercial developments. It has spent P22.4 billion during the first half.
At the same time, VLL’s board of directors extended its ongoing share buyback program until Nov. 5, 2020. The share buyback program was originally set to expire on Nov. 11, involving up to three billion shares in the company. So far, VLL has 1.4 billion shares left from the program.
“The board and management of the company believe that its shares are trading at a price level that is lower than the fair value thereof,” the company said.
Shares in VLL were unchanged after Monday’s trading session at P5.28 apiece.
VLL booked P5.24 billion in net income in the first six months of 2018, 17% higher year-on-year after revenues also climbed 16% to P21.14 billion. The company’s residential unit accounted for 84% of total revenues in the first half, while the leasing segment provided 16%.
The company looks to expand its full-year 2018 profit by 15-17%, banking on the strength of its residential business. Its portfolio of brands include Camella Homes, Brittany, and Crown Asia, among others. The affordable brand Camella alone generated 77% of total real estate sales from January to June.
Reservation sales are expected to hit P72 billion by the end of the year.
The company also targets to end the year with 30 Vista Malls under its commercial segment. By end-June, VLL’s commercial unit spanned 1.12 million square meters from 24 malls, 50 commercial centers, and seven offices. — Arra B. Francia