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