Vista Land may offer bonds overseas anew

Posted at 09/04/14 7:36 AM

MANILA - Property developer Vista Land & Lifescapes Inc. (VLL) on Wednesday said it plans to float more dollar-denominated bonds overseas after its $225-million offer in April attracted so many tenders.

The company said the transaction will be conducted by its offshore unit VLL International Inc. and will form part of its 7.45-percent senior guaranteed notes due in 2019.

The said debt paper may have a lower yield as it will only become an additional floatation for the company, known for its development of low-cost house-and-lot units all over the country, Brian Edang, the company’s investor relations
officer, said.

“There’s no amount yet because it will all depend on the demand. If there’s an opportunity [to float the bonds] we will take it,” Edang said.

The said bonds will also be guaranteed by the company and its units Brittany Corp., Camella Homes Inc., Crown Asia Properties Inc., Communities Philippines Inc. and Vista Residences Inc.

When the company floated its $225-million bonds in late April, it was oversubscribed with orders reaching $350 million from 44 accounts.

Most of the buyers were from Asia and only 5 percent came from Europe.

By investor type, 60 percent of the bonds were distributed to banks, 28 percent to fund and asset managers, and 12 percent to private banks, the company said.

“The success of the tender offer and new issue represents an important milestone for Vista Land in the active management of its capital structure. Most important, the exercise achieved the Vista Land’s
objectives of reducing interest expense, further diversifying its funding sources and increasing funding from offshore investors,” the company said earlier.

Also in April, the company launched a tender offer for its existing $150-million bonds that carries an 8.25-percent rate maturing in 2015. Some $103.76-million bondholders, or about 69 percent, accepted its offer. The rest of the bondholders decided to keep their paper until it becomes due.

Vista Land is famous for its affordable housing brands Camella and Palmera subdivisions, which, at the moment, comprise some two-thirds of the company’s portfolio. Each unit in these subdivisions costs no more than P4 million.

The company earlier reported a P2.8-billion net income for the first semester this year, some 12 percent higher from last year’s P2.5 billion.

Vista Land, controlled by the Villar family, said its revenues grew 14 percent to P11 billion from last year’s P9.7 billion. Reservation sales also grew 10 percent to P25.9 billion.