VILLAR-LED Vista Land and Lifescapes Inc. on Monday said it has obtained a P14.5-billion notes facility, proceeds of which will be used to fund its capital expenditures for the year.
The company said in its disclosure to the Philippine Stock Exchange that the five-year notes will have a fixed interest rate of 7.125 percent.
“The proceeds of the corporate notes facility will be used to fund the company’s 2019 capital expenditures for commercial property projects, and to fund other general corporate purposes,” Vista Land said in its disclosure.
It said the company has entered into a corporate notes facility agreement with PNB Capital and Investment Corp. as the mandated lead arranger and bookrunner. Its units Brittany Corp., Crown Asia Properties Inc., Camella Homes Inc., Communities Philippines Inc., Vista Residences Inc. and Starmalls Inc. acted as subsidiary guarantors.
Vista Land President and CEO Manuel Paolo Villar earlier said they will be launching more residential projects this year, amounting to a market value of P60 billion from P51.7 billion in 2018.
Villar said capital expenditures this year was placed at P40 billion, lower than the P45 billion spent in 2018 because Vista Land expects less construction of commercial spaces which are more capital-intensive.
“We are confident about the company’s prospects for the coming year as we have delivered strong residential sales in 2018 and have a significant leasing portfolio now accounting for about a quarter of our net income,” Villar earlier said.
Income of the property developer for the first quarter of the year grew 12 percent to P2.9 billion from P2.6 billion last year, driven by the growth of its core residential business and the contribution from its leasing business.
Consolidated revenues for the period ending March reached P11.4 billion, 14 percent higher than the P10.1 billion last year.