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Vista Land plans November issue of P500-M bonds

Posted on October 07, 2012 10:41:04 PM [ BusinessWorld Online ]

PROPERTY DEVELOPER Vista Land & Lifescapes, Inc. plans to offer next month the maiden issue of its Homebuilder Bonds, worth roughly P500 million, amid expected strong investor demand, a senior company official said on Thursday last week.

“The first tranche is expected to be launched in November,” Ricardo B. Tan, Jr., Vista Land’s chief financial officer and compliance officer, said in a text message when asked for a timetable for the company’s Homebuilder Bonds that were approved by the Securities and Exchange Commission (SEC) last Sept. 24.

Vista Land aims to offer as much as P2.5 billion in Homebuilder Bonds to the company’s traditional low- to middle-income market base in order to raise funds for corporate purposes and attract more buyers of the company’s properties.

The company expects to raise P468.93 million in net proceeds from the first tranche of P500.4 million that will fall due in 2015, which may be further expanded to a maximum of P834 million due in 2017, the bonds’ registration statement at the SEC read.

For the first tranche, the bonds will have a 5%-6.75% per annum interest rate and 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 as cash pay-out.

Investment & Capital Corp. of the Philippines and RCBC Capital Corp. will serve as underwriters.

The company expects good market reception for the bonds.

“We expect robust demand from retail investors -- hopefully individuals who aim to save to put up enough funds for a down payment for, say, a Camella home,” Mr. Tan said, referring to Vista Land’s flagship low-cost residential brand, Camella Homes.

Vista Land has so far delivered about 200,000 units to buyers since 1977, and claims to have presence in over 50 cities and municipalities nationwide, the company’s Web site read.

In the first quarter, the company bared plans to develop by yearend eight residential condominiums worth a total of P10 billion and 32 residential subdivisions worth P32 billion.

The developer targets P28 billion to P30 billion in reservation revenues by yearend, compared to a 2011 goal of P24 billion from 23 projects, it said last May. For 2012, Vista Land had programmed capital expenditure of P15 billion, to be used mostly for Camella Homes, which sells residential units valued at P3.5 million and below.

The real estate firm grew its net income by 25.86% to P2.19 billion in the first half from P1.74 billion in the same six months last year, buoyed by revenues that rose 22.7% to P8.1 billion from P6.6 billion in the same periods.

Vista Land shares slid by one centavo or 0.21% to P4.75 of Friday last week from P4.76 last Thursday. -- Franz Jonathan G. de la Fuente       

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