PHILIPPINE REAL ESTATE and RELATED NEWS in and around the country . . .
.
.

Vista Land raises P4.5B for old debt

Posted on April 22, 2012 09:06:47 PM [ BusinessWorld Online ]

MASS HOUSING developer Vista Land & Lifescapes, Inc., has raised P4.5 billion from a corporate notes issue that was reportedly snapped up by institutional investors, the Villar-led firm said in a statement on Saturday.

The fixed-rate notes issue, which matures in five years, was said to be oversubscribed and was upsized from its original value, Vista Land reported.

“Robust demand for Vista Land paper from our institutional clients compelled us to raise the transaction amount from P3 billion to P4.5 billion,” Eduardo V. Francisco, president of investment banking firm BDO Capital & Investment Corp., was quoted as saying in the statement.

BDO Capital managed Vista Land’s bond transaction together with Investment & Capital Corp. of the Philippines.

Proceeds of the offering will be used to refinance a portion of the company’s existing debt, as well as for general corporate purposes.

“I think the success of this transaction confirms that our countrywide expansion strategy has been very effective, and that the company’s continued growth and widening leadership in housing is being recognized in both the debt and equity markets,” Ricardo B. Tan, Jr., Vista Land chief financial officer said.

Just last Friday, the company said it had authorized its board to issue fixed-rate corporate notes amounting to as much as P5 billion, to partially finance its P15-billion capital expenditure budget for this year.

With its latest bond issue, Vista Land joins other listed rivals who have similarly moved to tap the local bond market amid a low-interest environment.

Vista Land earned P3.53 billion in net income last year, up 17.3% from P3.01 billion in 2010, on the back of robust sales from its affordable housing developments.

Shares of Vista Land fell by 0.94% or four centavos to close at P4.20 last Friday. -- Franz Jonathan G. de la Fuente
_____________________________________________________________

real estate central philippines
Copyright ©2008-2017