The Securities and Exchange Commission approved the P20-billion bond shelf registration of homebuilder Vista Land & Lifescapes Inc.
The SEC said it also approved Vista Land’s initial tranche offering of P3 billion worth of seven and 10-year bonds with an oversubscription of up to P2 billion.
The remaining unissued bonds will be placed under shelf registration which the company may issue over the next three years.
Vista Land plans to use proceeds from the initial tranche to finance planned commercial developments, including the completion of the Evia Lifestyle Center in Daang Hari, Las Piñas City and the development of Vistamall Malolos in Bulacan province.
The property firm has tapped Chinabank Capital as issue manager and underwriter for the fund raising activity. The bonds will be listed at Philippine Dealing & Exchange Corp.
Vista Land this year has allotted P35 billion for capital expenditures, including P26 billion for lot residential development and P9 billion for its leasing business.
It recently announced intention to accelerate project launches with the rollout of P42 billion worth of developments this year, higher than the original target of P30 billion, as it expects 2017 to be a banner year for the company.
Vista Land has projected a double digit growth in revenues this year.
For its leasing business, the company plans to hit 1 million square meters of gross floor area this year and 1.3 million by 2018. The bulk will come from commercial and shopping malls it will build under the Starmall and Vista Mall brands.
Vista Land has 17 shopping malls, with 12 are under construction that are slated for completion over the next two years.
It plans to expand geographic reach to 200 municipalities and cities over the next two years from the current 121 to strengthen its leadership in house and lot segment of the residential market.
Vista Land is one of the few publicly-listed real estate companies that generates over half of revenue outside mega Manila.
The company as of 31 March 2017 owned approximately 2,267 hectares of raw land ready for development, with an additional 336.2 hectares available joint venture agreements.