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Vista Land to offer homebuilder bonds

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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