Homebuilder Vista Land & Lifescapes Inc. plans to raise up to P30 billion from the issuance of fixed rate bonds.
Vista Land said in a disclosure to the stock exchange it filed with the Securities and Exchange Commission an application to issue P30 billion worth of bonds in tranches over a period three years under a new shelf registration program.
Vista Land plans to offer P10 billion worth of 5.5 year-bonds for the initial tranche.
It said it would sell P5 billion as the last tranche of the current P20-billion shelf program and another P5 billion under the new bond issue.
Vista Land chief finance officer Brian Edang said the company would use net proceeds from the bond offering to pre-fund the company’s capital expenditures in 2020.
The company tapped China Bank Capital, PNB Capital and SB Capital as underwriters of the bond offering. The house and lot developer plans to issue the bonds in December.
Vista Land in July secured P14.5 billion in five-year corporate notes to partially finance the company’s programmed spending this year. The corporate notes carried a fixed interest rate of 7.125 percent a year.
Vista Land registered an 11-percent growth in net income to P5.8 billion in the first half of the year from P5.2 billion year-on-year.
Consolidated revenues increased 11 percent to P23.4 billion from P21.1 billion a year ago.
Leasing revenues during the period rose 17 percent to P3.9 billion from P3.3 billion a year ago, driven by the increase in leasable spaces from malls.
The company also focused on increasing residential launches as demand remains strong from local as well as overseas Filipino workers.
Vista Land has aimed to launch at least P50 billion worth of residential projects this year.
Vista Land has presence in 147 cities and municipalities across 49 provinces as of end March 2019. It plans to focus on the development of integrated urban developments combining lifestyle retail, prime office space, university town, healthcare, themed residential developments and leisure components.
