MANILA, Philippines - A unit of property firm Vista Land & Lifescapes Inc. plans to raise more fresh capital to back up its spending program up to next year.
In a disclosure to the local bourse, the real estate unit of the Villar family said its subsidiary, VLL International Inc., will issue more dollar-denominated notes to be consolidated with the existing $225-million senior guaranteed notes due 2019 issued five months ago.
The five-year corporate notes will carry an interest rate of 7.45 per annum.
“The company’s wholly-owned subsidiary, VLL International, expects to offer additional US-denominated notes which, upon issuance, will be fungible with and will be consolidated and form a single series with the 7.45-percent senior guaranteed notes due 2019 issued by VLLI on April 29, 2014,” the company said.
Vista Land investor relations officer Brian Edang said the amount to be raised has yet to be decided by the company, but will likely be lower than the previous $225 million.
Edang said proceeds will be used to partially fund the company’s capital expenditures for this year or next year as well as for corporate purposes.
“Timing will depend on the opportunity but we want to close it as soon as possible,” Edang said.
Vista Land has allotted P21 billion for capital expenditures this year, up 22 percent from P17.2 billion in 2013.
The property firm is earmarking at least P50 billion over the next five years to develop the 1,500-hectare Vista City in southern Metro Manila which will cover portions of Muntinlupa, Las Piñas, Bacoor in Cavite and San Pedro in Laguna..
Vista City is an integrated urban development that will combine lifestyle retail concepts, prime office space, a 100-hectare university town, themed residential developments and leisure components.
Aside from Vista City, the Villar-led firm is also venturing into office space development with a P1.5-billion tower in Bonifacio Global City. Construction of the tower will start in November and will be completed in the second quarter of 2016.