Posted on August 21, 2012 10:22:56 PM
[ BusinessWorld Online ]
LISTED DEVELOPER Vista Land &
Lifescapes, Inc. will be offering this year the first tranche of its
P2.5-billion homebuilder bonds to raise funds for corporate purposes and
attract more buyers.
The Villar-led company last Friday
registered the bonds with the Securities and Exchange Commission, said Ricardo
B. Tan, Jr., Vista Land chief financial officer and compliance officer, in a
text message to BusinessWorld yesterday.
This paves the way for a first tranche
issuance of P500 million this semester.
Last July 26, Vista Land authorized
management to offer its Homebuilder Bonds at a maximum amount of P2.5 billion,
earlier reports showed.
“The primary purpose of the bonds is
to provide Vista Land’s existing and prospective customers with an alternative
investment vehicle which should also assist and encourage them to purchase
Vista Land’s horizontal and vertical residential products,” the property firm
said in a statement, adding that the earnings from the bonds may also be
allotted for general corporate purposes.
The bonds will have a three-year
tenor, which may be extended to five years if desired, a 5% to 6.75% per annum
indicative interest rate for the first tranche, and a P180,000 minimum
subscription payable through 36 monthly payments of P5,000.
Upon the bonds’ maturity, investors
may opt to use the proceeds to purchase a Vista Land property, or secure a cash
pay-out, the company said.
Investment & Capital Corp. of the
Philippines (ICCP) will be serving as financial advisor and issue manager for
the offering.
“Having acted as co-lead manager for
Vista Land’s recent successful P4.8-billion notes issue, we are again looking
forward to working closely with the company in ensuring the success of their
first Homebuilder Bond issue,” Conrado A. Gloria, ICCP president and chief
operating officer, was quoted as saying.
Vista Land has so far delivered about
200,000 units to buyers since 1977, and claims to have a presence in over 50
cities and municipalities nationwide.
Earlier this year, the company bared
plans to develop eight residential condominiums worth P10 billion and 32
residential subdivisions worth P32 billion this year.
For 2012, Vista Land has programmed a
capital expenditure of P15 billion. Vista Land shares rose by 1.14% to P4.42
last Friday. -- Franz Jonathan G. de la Fuente
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