Vista Land to issue dollar notes as rates fall

Vista Land & Lifescapes, Inc., one of the country’s largest integrated developers and the biggest homebuilder, is planning to offer Regulation S only USD-denominated senior unsecured guaranteed notes.

In a disclosure to the Philippine Stock Exchange, the firm said it has mandated DBS Bank Ltd., HSBC as Joint Global Coordinators, Joint Lead Managers and Joint Bookrunners, and Credit Suisse as Joint Lead Manager and Joint Bookrunner, to arrange a series of fixed income investor calls on July 8, 2020.

Vista Land said an offering of senior unsecured guaranteed notes will be via a drawdown from VLL’s MTN Program may follow subject to market conditions.

Any Notes will be issued by VLL International, Inc., and be unconditionally and irrevocably guaranteed by Vista Land and certain VLL subsidiaries as Subsidiary Guarantors.

Proceeds from any Notes issued may be used to refinance the Company’s existing notes due 2022 via a tender offer and consent solicitation, likewise subject to market conditions.

Vista Land posted a 10 percent growth in net income to ₱11.6 billion last year from ₱10.5 billion in 2018.

The firm said earnings rose because of the strong performance of its commercial assets and sustained contribution from its residential business.

Consolidated revenues grew 7 percent to ₱44.4 billion from ₱41.5 billion last year as leasing income posted an increase of 20 percent to ₱8.5 billion while revenues from real estate increased by 3 percent to ₱32.8 billion.

“We are pleased with the Company’s 2019 performance as both our leasing and residential businesses provided steady growth,” said Vista Land Chairman Manuel B. Villar Jr.

He noted that, “Revenue growth from our existing investment properties of about 1.5 million square meters continues to be strong.”

“In terms of our residential business, we have recorded reservations sales of ₱78.5 billion as well as launched projects mostly outside Metro Manila with an estimated value of ₱38.5 billion for 2019, composed of affordable housing and CoHo projects, our version of Midrise buildings,” Villar added.

Vista Land President and CEO of Manuel Paolo Villar said “The start of 2020 has been challenging with the occurrence of a series of unforeseeable events, especially the COVID-19 pandemic.”

He disclosed that, “Vista Land will refocus on optimizing its existing portfolio of investment properties as well as utilize its current land bank of about 3,000 hectares.” (James A. Loyola)