Vista Land gets permit to sell 'homebuilder bonds'
MANILA, Philippines - Villar-led property developer Vista Land & Lifescapes Inc. has received its permit to sell "HomeBuilder Bonds" from the Securities and Exchange Commission (SEC).
Vista Land will sell the first tranche of the bonds worth P500.4 million due in 2014. The amount can be increased up to P834 million and extended to 2017.
The company is planning to offer up to P2.5 billion worth of "homebuilder" bonds.
Buyers can buy the Homebuilder Bonds for a minimum subscription of P180,000, payable in 36 months or P5,000 per month. At maturity, the bondholder can apply the investment proceeds for a Vista Land property or cash out.
The first tranche of P500.4 million will have a fixed rate of 5% per annum. Bondholders exercising the extension option will get an adjusted rate of 6.75% starting from the initial maturity on 2015 up to 2017.
There will be bonus credits if the bondholder decides to convert the investment as payment for a Vista Land property.
Vista Land's brands include Camella Homes, Brittany, Crown Asia, Communities Philippines and Vista Residences.