Vista Land eyes P10 B from 1st tranche of P35-B bonds

Vista Land & Lifescapes Inc., richest Filipino Manuel B. Villar’s integrated real estate developer, is raising up to P10 billion from bond offering to be taken from its planned shelf registration of P35 billion worth of bonds.

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Vista Land Chairman Manuel B. Villar Jr. surveying his land bank

In a disclosure to the Philippine Stock Exchange, the firm said its Board of Directors has approved the application with the Securities and Exchange Commission for registration of peso-denominated fixed-rate bonds amounting to P35 billion.

The bonds will be issued in tranches within a period of three years from the effective date of the registration statement for the Shelf Bonds. 

The initial tranche shall involve the offer and issuance of up to P10 billion fixed-rate bonds consisting of up to P6 billion with an oversubscription option of up to P4 billion.

“The Board of Directors of the Company has authorized Management to determine such other terms and conditions of the Offer, as may be advantageous to the Company and in accordance with the scope of authority given by the Board, including, but not limited to, the determination of the interest rate of the Offer Bonds, and the subsequent offerings out of the shelf registration of the Shelf Bonds,” Vista Land said.

China Bank Capital Corporation, SB Capital Investment Corporation, and Union Bank of the Philippines have been mandated to act as joint lead underwriters and joint bookrunners for the Offer.

Vista Land, one of the country’s leading integrated property developers and the largest homebuilder, reported an 83 percent surge in net income to P5.8 billion for the first semester of 2023 from the P3.18 billion earned in the same period last year.

The company said it launched a total of P24.3 billion worth of projects across the country.  

“We are pleased with our performance for the 1st semester of 2023 as we have sustained our growth trajectory for the year,” Vista Land Chairman Manuel B. Villar Jr. said.  

He added that, “we have been launching more projects this year compared to last year. These launches will form part of our huge project pipeline. It’s also a big factor in our reservation sales performance which generated a total of P35.6 billion for the 1st semester which is 12% higher from same period last year.”  

“Our overall strategy for the group remains to be maximizing our land to its best use,” Villar noted.

Vista Land reported a consolidated revenue of P18.3 billion for the period which is up 8 percent. Real estate revenue registered at P8.0 billion while rental income amounted to P7.9 billion for the first half of 2023. 

Gross profit was at P4.7 billion while EBITDA amounted to P10.0 billion. Vista Land improved its gross margin by over 300 basis points to 59 percent.

The company also recognized a gain from the proceeds of insurance amounting to P1.8 billion. Core net income (excluding the gain from insurance proceeds) is at P4.2 billion for the period.