Homebuilder Vista Land & Lifescapes Inc. has set the interest rate for its planned P10 billion, fixed-rate bond offering this month.
Vista Land said in a disclosure to the stock exchange the five-year bonds due 2023 would carry an interest rate of 8 percent yearly,] while the seven-year bonds due 2025 would offer 8.25 percent.
The company set the offering period from Dec. 10 to 14 and the issue date on Dec. 14. The bonds will be listed with Philippine Dealing & Exchange Corp.
Vista Land plans to issue P5 billion in retail bonds with an oversubscription of another P5 billion in case of strong demand. It will issue the bonds from a P20-billion bond shelf registration approved by the Securities and Exchange Commission in July 2017,
Vista Land is offering the bonds through China Bank Capital Corp., the issue manager, underwriter and book runner of the fund raising activity.
Credit Rating and Investors Services Philippines Inc. earlier rated the bonds AAA, the highest rating assigned by the rating company.
Vista Land plans to use the proceeds from the bond offering to pay maturing obligations and partially finance capital expenditures in 2019.
The company has a P4.3-billion retail bond issue maturing in April next year.
Vista Land earlier reported that net income in the first nine months of the year rose 16 percent to P8.3 billion from P7.1 billion year-on-year.
Consolidated revenues during the period stood at P31 billion, up 16 percent from the previous year’s P26.9 billion.
Real estate sales increased 16 percent to P24.4 billion from P20.8 billion a year ago.
Leasing income rose 19 percent to P5.2 billion from P4.3 billion in the comparable period last year.
Vista Land also approved the extension of a P3-billion share buyback program until November 2020.