Vista Land lists P5-B debt papers

MANILA, Philippines - Listed property firm Vista Land & Lifescapes Inc. listed yesterday P5 billion worth of debt papers in the country’s fixed income trading platform, completing the company’s return to the bond market.

Proceeds from the fundraising program will be used to expand the recurring income portfolio and pay existing debts of the real estate unit of the Villar family.

Bonds of Vista Land began trading yesterday at the Philippine Dealing and Exchange Corp. Specifically, Vista Land listed P4.32 billion fixed-rate bonds due 2019 and P673.73 million fixed-rate bonds due 2021.

The five-year and seven-year debt papers carry an interest rate of 5.65 percent and 5.94 percent, respectively. Vista Land has the option to buy back the bonds a year ahead of maturity.

The bulk of the fresh capital from the bond issuance will support the construction of commercial centers near subdivisions, said

Vista Land president and CEO Manuel Paolo Villar.

Vista Land hired China Banking Corp. as the participating underwriter while BDO Capital & Investment Corp. was tapped as the issue manager, underwriter and bookrunner.

Credit Rating and Investors Services Philippines Inc. (CRISP) assigned the highest bond score for the debt papers.

CRISP noted the company’s “leadership in the low-cost and affordable housing market, excellent financial performance, strong management team and a successful operating model.”

“CRISP also believes that the company’s leadership in the low-cost and affordable housing market segments will continue as a result of its strategic landbanking decisions and the growing demand in these sectors,” the credit rater said.

Vista Land is the holding company of five business units: luxury brand Brittany, upper middle income segment Crown Asia, Camella Homes, Communities Philippines and condominium builder Vista Residences. It will also roll out its socialized housing arm Lumina Homes Inc. that will sell homes at P1.5 million and below.

The country’s largest homebuilder will launch P28 billion worth of projects this year, two-thirds of which are under middle income brand Camella Homes.

In 2013, the country’s largest homebuilder launched 35 projects with an estimated value of P26.1 billion, 31 of which are in the low and affordable segment.

Vista Land also allotted P21 billion for capital expenditures this year, up 22 percent from P17.2 billion in 2013. In the past 38 years, the property firm has completed more than 250,000 housing units in 31 provinces and 64 cities and municipalities around the country.