MANILA, Philippines - Villar-led Vista Land and Lifescapes Inc. successfully raised P4.5 billion from the sale of unsecured domestic corporate notes to institutional investors.
Vista Land was originally targeting to issue P3 billion worth of bonds but it eventually upsized it to P4.5 billion due to strong demand for the notes, which have a maturity of five years.
“This is a significant milestone for our company. I believe it is a strong vote of confidence from the financial community, and we will certainly continue to work hard to further strengthen their belief and confidence in Vista Land,” said Manuel Paolo Villar, president and chief executive officer of Vista Land.
Coming off a banner year that saw profits and sales hitting lifetime highs in 2011, Vista Land expects to sustain its upward momentum on the back of a growing economy, steady remittances from Filipinos working overseas and a low interest rate regime.
Vista Land sees its profit and revenues growing by 20 percent this year to around P4.2 billion and P16 billion, respectively.
The company intends to use proceeds from the offering to partly refinance some of its existing debt and for general corporate purposes.
Ricardo B. Tan, Jr., Vista Land’s chief financial officer, attributed the success of the transaction to the group’s countrywide expansion strategy and widening leadership in housing.
Vista Land is the holding company of five business units, namely, Brittany, Crown Asia, Camella Homes, Communities Philippines and Vista Residences.
To take advantage of a buoyant property market, Vista Land is rolling out 32 new residential subdivision projects across the country, with an estimated total project value of P32 billion. This is significantly higher than the 23 projects launched in 2011 with an estimated value of about P21 billion.
Vista Land will embark on 20 expansion projects and launch horizontal developments in 12 new areas to further enlarge its geographical footprint, which currently encompasses 25 provinces and 55 cities and municipalities.
Vista Land has set aside P15 billion for its capital expenditures this year, mainly to step up developments in three main flagship projects -- Evia in Las Pinas, Lakefront in Sucat, Muntinlupa, and Sta. Elena in Sta. Rosa, Laguna.