MANILA, Philippines - Property firm Vista Land & Lifescapes Inc. has raised $125 million in fresh capital from the additional issuance of dollar-denominated notes by subsidiary VLL International Inc. (VLLI).
The real estate unit of the Villar family intends to utilize the amount to finance its capital expenditures and for general corporate purposes, it said in a disclosure to the Philippine Stock Exchange yesterday.
Vista Land said approximately 91 percent of the additional notes were distributed outside of the Philippines to a broad range of international investors after demand reached over $300 million.
DBS Bank Ltd. served as the sole global coordinator and sole lead manager of the issuance.
VLLI is set to issue the additional notes on or around Sept. 11 at an issue price of 102 percent of their principal amount plus accrued interest from the issue date of the original notes, which represents a yield to maturity of 6.935 percent.
The additional dollar-denominated notes, upon issuance, will be consolidated with the existing $225-million senior guaranteed notes that carry an interest rate of 7.45 per annum issued in April 29 and due 2019.
Vista Land said the fresh notes are guaranteed by the company and its subsidiaries Brittany Corp., Crown Asia Properties Inc., Camella Homes Inc., Communities Philippines, Inc., and Vista Residences Inc.
VLLI, a wholly-owned subsidiary of Vista Land incorporated in the Cayman Islands, will be listing the notes the Singapore Exchange Securities Trading Ltd.
For this year, Vista Land has allocated P21 billion for capital expenditures, 22 percent more than last year’s P17.2 billion.
The Villar-led property firm is also planning to invest at least P50 billion over the next five years to develop 1,500-hectare Vista City in southern Metro Manila.
Vista City will be an integrated urban development that will combine lifestyle retail concepts, prime office space, a 100-hectare university town, themed residential developments and leisure components which will cover portions of Muntinlupa, Las Piñas, Bacoor in Cavite and San Pedro in Laguna.
Aside from Vista City, Vista Land will also be starting in November its initial venture into office space development through a P1.5-billion tower in Bonifacio Global City. The tower is expected to be completed in the second quarter of 2016.