Vista Land raises P5 B from dual tranche bond offer

MANILA, Philippines -  Vista Land & Lifescapes Inc., the largest homebuilder in the Philippines, successfully raised P5 billion from the sale of five-year and seven-year bonds.

The company listed the bonds on the Philippine Dealing & Exchange Corp. (PDEx) last week.

The bonds due 2024 and 2027 carry an interest rate of 5.7512 percent and 6.2255 percent per annum, respectively.

Manuel Paolo Villar, president and CEO of Vista Land, said the company has made significant strides toward improving the company’s credit profile over the last few years.

“We have lowered the cost of our borrowing and extended the maturities of our debt instruments. This is the first 10-year peso retail bond issued by the company,” Villar said.

The P5-billion bond issue is the first tranche of Vista Land’s P20-billion retail bonds registered under the Securities and Exchange Commission’s shelf registration facility.

The bonds have been assigned an “AAA” issuer rating by local debt watcher Credit Rating and Investors Services Philippines Inc. (CRISP), indicating a stable outlook for the company.

The bonds represent the 21st corporate bond to be listed in PDEx this year.

With the P5 billion bonds, year-to-date new listings and enrollments at PDEx now amount to P140.21 billion or 150 percent higher than the same period last year.

The cumulative level of bonds listed or enrolled today stands at P740.92 billion comprised of 126 securities issued by 46 companies.

PDS Group president and CEO Cesar Crisol said the growing number of listings is an indicator of a positive economic environment.

“It’s a micro indicator of how investible funds, which are almost entirely domestic, remain sizable enough to supply the needs of corporate issuers that are now able to return to market in regular and more frequent intervals,” Crisol said.

He said the Philippines is still within a virtuous cycle of economic growth.

“We remain committed to doing our part to keep this ‘engine of capital flow’ running,” he added.

At present, Vista Land has been enjoying steady growth.

It is already into commercial and mall developments as well as residential projects. It is also into a memorial park development and new and emerging retail components.

Vista Land plans to venture into tourism as another leg of business. It is open to integrated resorts, which may also have gaming components that would be operated by other occupants.