Richest Filipino Manuel B. Villar Jr.’s Vista Land and Lifescapes Inc. has received the highest PRS Aaa issue credit rating, with a Stable Outlook, from Philippine Rating Services Corporation (PhilRatings) for its planned bond issuance of up to P10 billion.
Vista Land, one of the country’s leading integrated property developers and the largest homebuilder, plans to issue bonds amounting to P6 billion, with an oversubscription option of up to P4 billion. The issuance will be the initial tranche of VLL’s new P35 billion Shelf Registration.
The proceeds of the proposed bond issuance will be mainly used to refinance the company’s maturing debt obligations and for other general corporate purposes.
PhilRatings also maintained the Issue Credit Rating of PRS Aaa, with a Stable Outlook, for VLL’s total outstanding bonds worth P10 billion.
PRS Aaa is the highest credit rating on PhilRatings’ long-term issue credit rating scale. Obligations rated PRS Aaa are of the highest quality with minimal credit risk as the obligor’s capacity to meet its financial commitment on the obligation is extremely strong.
On the other hand, a Stable Outlook means the rating is likely to be maintained in the next 12 months.
PhilRatings said the assignment of VLL’s issue credit rating too into consideration the firm’s well-diversified portfolio, coupled with an extensive landbank available for future development.
It also took into account the company’s healthy profitability with strong margins, its manageable debt levels and strong cash flows, and favorable industry outlook, backed by growing demand.
Vista Land said earlier that 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.
VLL offers a wide range of residential products intended to appeal to customers across all income segments. It also develops mass market retail malls and Business Process Outsourcing (BPO) commercial centers.
As of Dec. 31, 2022, VLL accumulated a total of over 1.6 million square meters (sqm) of gross floor area (GFA) of investment properties consisting of 45 malls, 56 commercial centers and seven office buildings.
Its projects are distributed in 149 cities and municipalities in 49 provinces throughout the Philippines.
VLL also has an extensive nationwide landbank available for future development. As of June 30, 2023, the Company owned approximately 3,085 hectares (ha) of raw land for development. In addition, the Company has identified around 1,754 ha of land with potential for an expansion program.