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Vista Land finalizes P2.5-b bond terms

By Jenniffer B. Austria | Posted on August 22, 2012 | 12:01am
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Vista Land & Lifescapes Inc., the property unit of Villar Group, has finalized the terms and condition for the planned issuance of P2.5 billion worth of homebuilder bonds.

The company said it filed with the Securities and Exchange Commission the registration statement and prospectus to issue and offer to the public homebuilder bonds amounting to P2.5 billion. It plans to use the proceeds to fund general corporate activities.

Vista Land said it would issue the bonds in tranches, with the first unit of P500 million expected by the second half of this year.

The bonds aim to provide Vista Land’s existing and prospective customers with an alternative investment vehicle and assist and encourage them to purchase Vista Land’s horizontal and vertical residential products.

“We are excited with the maiden launch of our P2.5-billion HomeBuilder Bond series.  We believe that this vehicle, as we have structured it, is very well-suited to the needs of our customer base and our product profile,” Vista Land president and chief executive Manuel Paolo Villar said.

The minimum subscription under the HomeBuilder bond is P180,000, payable in 36 equal monthly payments of P5,000.

At maturity, the bondholder will have the option to either apply the investment proceeds for purchase of a Vista Land property or opt for a cash pay-out.

Vista Land also provides bonus credits, which can be applied as payment for a residential unit if they fulfill certain investment requirements.  The bonds will have a tenure of three years, extendible to five years at the option of the bondholder.

The company set an indicative interest rate for the first tranche, ranging from 5 percent to 6.75 percent per annum.

Vista Land tapped Investment & Capital Corp. of the Philippines as financial advisor and issue manager for the offering.

Vista Land is the holding company of five business units—Brittany, Crown Asia, Camella Homes, Communities Philippines and its condominium development subsidiary, Vista Residences.

The company recently reported a 25-percent hike in net income in the first half to P2.19 billion.

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