Vista Land raises P6 billion from bond issue

MANILA, Philippines —Vista Land & Lifescapes Inc. (Vista Land) has successfully raised P6 billion through the issuance of its fixed-rate peso denominated bonds.

The bonds, issued yesterday, consist of Series F 2026 bonds with an interest rate of 7.5426 percent per annum and Series G 2028 bonds with an interest rate of 7.6886 percent per annum.

Local debt watchers have given the bonds the highest credit ratings in their ranking portfolio.

The bonds have been rated AAA by Credit Rating and Investors Services Philippines Inc. (CRISP), and PRS Aaa by the Philippine Rating Services Corp. (PhilRatings), which are both the highest ratings assigned by PhilRatings and CRISP.

Vista Land’s latest issuance represents the initial tranche of the P35 billion fixed rate bonds it earlier registered with the Securities and Exchange Commission’s (SEC) shelf registration program.

For the initial tranche, the company has tapped China Bank Capital Corp., SB Capital Investment Corp. and Union Bank of the Philippines as the joint issue managers, joint lead underwriters, and joint bookrunners.

Vista Land will use the proceeds for general corporate purposes.

For the first nine months, the Villar-led developer posted a net income of P8.2 billion, up by 70 percent from the same period last year while consolidated revenue increased by 18 percent to P27.4 billion.

As of the end of the third quarter, the company launched 28 projects with an estimated project value of about P40 billion.

Of total revenue, real estate revenue returned to double-digit growth with a 17 percent increase to P12.2 billion, while rental income amounted to P11.8 billion during the nine-month period.

Vista Land’s core net income, which excludes the gain from insurance proceeds, registered an increase of 30 percent to P6.8 billion for the period.

For the rest of the year, the company is optimistic on the business environment amid the strong economic growth of 5.9 percent, coupled with sustained growth in overseas Filipino remittance and revenge spending from consumers, all of which contributed to the positive performance of the group.