Vista Land to issue P10 B bonds

Villar-led Vista Land & Lifescapes Inc. is set to issue up to P10 billion worth of bonds to partly cover the construction of its mall and condominimum projects.

The base offering involves P5 billion. An additional P5 billion in bonds will be sold in case of oversubscription.

This forms part of the company’s planned three-year shelf registration of P30 billion.

The proposed issue was assigned a PRS Aaa rating, the highest on PhilRatings’ long-term issue credit rating scale. Obligations rated PRS Aaa are of the highest quality with minimal credit risk. The issuer’s capacity to meet its financial

commitment on the obligation is extremely strong.

It was also given a stable outlook. This means the rating is likely to be maintained or to remain unchanged in the next 12 months.

In issuing the rating, PhilRatings considered VLL’s well-diversified portfolio, its continuously growing profitability with strong margins and its ability to generate cash flows from operations and the favorable industry outlook backed by resilient and growing demand.

Incorporated in 2007, VLL is one of the leading integrated property developers in the Philippines. It offers a wide range of residential products catering to customers across all income segments. The development and sale of the company’s residential projects are operated under Brittany, CamellaHomes, Communities Philippines, Crown Asia and Vista Residences.

In 2015, VLL expanded its portfolio to include the mass market retail mall through the acquisition of Starmalls, a major developer, owner and operator of retail malls that target mass market retail consumers in the country.

VLL has built over 400,000 homes, 31 malls, 52 commercial centers and seven office buildings. As of Sept. 30, the company’s projects were distributed in 147 cities and municipalities in 49 provinces throughout the Philippines.

The company’s total consolidated revenues have been growing healthily during the five-year period reviewed from 2014 to 2018, with a compound annual growth rate (CAGR) of 11.9 percent.

The share of rental income to total revenues consistently increased with a CAGR of 42.5 percent, decreasing the share of real estate revenues. Despite the decline in terms of percentage share, real estate revenues steadily grew, with a CAGR of 9.2 percent.