By VG Cabuag
VISTA Land & Lifescapes Inc., the listed property-development arm of the Villar family, said it raised $125 million (about P5.75 billion) in international bonds as part of its medium-term note program.
“With this fund-raising, Vista Land is well positioned to achieve our targets for residential developments and commercial expansion for 2016. We are extremely pleased with our ability to successfully tap the international-bond market, despite all the recent market volatility. Our ability to access offshore medium-term funds reflects the strong confidence that credit investors have on us,” Manuel Paolo Villar, the company’s CEO, said in a statement.
The amount was raised via a retap of Vista Land’s existing 7.375-percent senior unsecured bonds due June 2022, off its $1-billion medium-term note program.
The company already used $300 million out of its program last year. Proceeds of that issuance were used to refinance its expensive debts and general working capital.
The new funds were raised at a price of 102 percent, which represents a yield of 6.979 percent per year.
“By accessing the international bond market, the company has been able to preserve appetite for future financing requirements in the local peso market,” the company said.
The new funding marks the company’s first capital fund-raising after its acquisition of Starmalls Inc.
The proceeds will be utilized to fund the capital expenditure plans of the combined entity of Vista Land and Starmalls, it said.
Vista Land recently acquired Starmalls, which owns and operates 10 retail malls and two business-process outsourcing commercial centers, with a combined gross floor area of 509,385 square meters.
Last year the company allotted P25.1 billion in capital expenditures, which was higher than P21 billion in the capex it budgeted in 2014.
Vista Land, a company known for its horizontal house-and-lot developments all over the country, said its income rose 18 percent during the nine months of 2015 ending September to P5.02 billion, from the P4.24-billion profit during the same period in 2014.
Real-estate revenues reached P18.52 billion, from last year’s P16.88 billion. Sales also remained strong at P42.7 billion, compared to last year’s P38.7 billion.
The company said the increase in revenues was a result of the overall completion rate of sold inventories of its business units, particularly those of Communities Philippines and Vista Residences, during the period. It uses the percentage-of-completion method of revenue recognition, where revenue is computed in reference to the stages of development of the properties.