Vista Land & Lifescapes Inc. is planning to raise about $300 million through wholly-owned subsidiary and an affiliate VLL International Inc. which will issue senior unsecured fixed rate notes under its $2 billion Medium Term Note Programme.
In a disclosure to the Philippine Stock Exchange (PSE), Vista Land said the notes will be guaranteed by Vista Land and its subsidiaries Brittany Corporation, Camella Homes Inc., Communities Philippines Inc., Crown Asia Properties Inc., Vista Residences Inc., and Vistamalls Inc.
The notes will have a tenor of five years with an initial price guidance in the area of 9.50 percent. The notes, which will be listed in Singapore (SGX-ST) will be settled on July 29, 2024 and will have a maturity date of July 29, 2029.
The net proceeds will be used by Vista Land for refinancing, working capital, investment and other general corporate purposes, said Vista Land Chief Finance Officer Brian Edang.
DBS Bank Ltd and HSBC have been tapped by Vista Land as joint global coordinators, joint bookrunners, and joint lead managers. KIS Asia is also joint bookrunner and joint lead manager while Union Bank of the Philippines is the domestic lead manager.
Vista Land posted an 11 percent improvement in net income to P3 billion in the first quarter of 2024 from P2.7 billion in the same period last year.
The firm said it launched a total of P10.1 billion worth of projects across the country during the period under review.
“We look forward to 2024 as we will continue with our asset maximation and optimization strategy via our Vista Estates which now stand at 26 across the country," said richest Filipino and Vista Land Chairman Manuel B. Villar Jr.
He added that “we remain optimistic with the industry as we continued with our project launches which in turn delivered a 12 percent growth in our reservation sales to P20.8 billion for the quarter.”
“In addition to our existing strategy, we will also aim to solidify our foothold in the horizontal residential market with launches in several areas, specifically in the provinces. Having the widest geographic presence has been one of our strengths and now we have also expanded our offerings to include both horizontal and vertical residential products across the Philippines,” Villar noted.
Vista Land President and CEO Manuel Paolo A. Villar said “we allotted a capital expenditure budget of P30.0 billion for the year of which 98 percent will be for residential units’ construction and land development. Land acquisition as well as investment properties construction will account for the remaining two percent of the budget.”