Vista Land raises $125 M from bond issue

MANILA, Philippines – Vista Land & Lifescapes Inc. raised $125 million from the issuance of senior guaranteed dollar-denominated notes.

This was done via the re-opening of its 2022 bonds, Vista Land said.

The company said it successfully navigated the market volatility witnessed in the first few weeks of the year and was able to capture an appropriate execution window in a deal well received by investors.

“This transaction represents the first US dollar bond offering from an Asean corporate in 2016 and the first non-China US dollar high yield bond out of Asia in 2016. Vista Land re-opened the Philippines real estate space in the international debt capital markets, setting a benchmark for further issuances,” Vista Land said.

Proceeds from the issuance would be used to fund capital expenditures and for general corporate purposes.

DBS Bank Ltd. and HSBC acted as joint lead managers and bookrunners for the issue while BDO Capital & Investment Corp. and China Bank Capital Corp. acted as joint domestic lead managers.

 Vista Land is the largest horizontal homebuilder in the Philippines with a 40-year track record of delivering homes across the country.

It recently acquired Starmalls Inc., a major developer and operator of mass market retail malls, in a deal valued at P33 billion.  The transaction combines the residential and shopping mall businesses of billionaire Manuel Villar.

The acquisition strengthens Vista Land as the country’s fourth largest integrated property developer and will allow the company to seal joint venture partnerships for self-contained communities.

Under the deal, Vista Land acquired a controlling 88.25 percent stake in Starmalls from the Fine Group, comprising shareholders affiliated with the Villar family.

Vista Land and Starmalls are both principally owned by the Villar family.

In the nine months to September 2015, Vista Land grew its earnings to P5 billion from P4.25 billion on higher sales.