VLL International Inc. (VLL), the foreign investment unit of Villar-led Vista Land and Lifescapes Inc., is set to raise $125 million more through an additional debt sale, which will be consolidated to form a single series with the $225 milllion older bonds issued on April 29.
The additional bonds will boost the company’s dollar-denominated debt to $350 million.
In a statement, VLL said the additional $125 million worth of bonds will be issued on September 11, with a 6.935 percent annual interest rate, while the annual interest rate for the earlier $225 million bonds is at 7.54 percent.
“DBS Bank Ltd., the sole global coordinator and sole lead manager of the issuance, distributed approximately 91 percent of the additional notes to a broad range of international investors after receiving over $300 million in demand,” VLL said.
The UK-based Vista Land unit is planning to list the debt notes on the Singapore Exchange Securities Trading Limited.
Vista Land Investor Relations Head Brian Edang said the $125 million additional debt sale would be for the firm’s P21.6 billion capex for the second half of the year, while the previous $225 million was earmarked for debt refinancing.
Vista Land already spent 48 percent or P10.4 billion of the allotted capex in the first six months of the year. It has spent P2.6 billion for land acquisition, P2.1 billion for land development, and P5.7 billion for construction.
The additional bond securities will be coming from, and will be guaranteed by, Vista Land and its subsidiaries Brittany Corp., Crown Asia Properties, Inc., Camella Homes, Inc., Communities Philippines, Inc., and Vista Residences, Inc.
Vista Land’s net income for the first half of the year jumped 14 percent to P2.8 billion in the first half from P2.5 billion a year ago. The company said it is “on track” with its whole year target of “double digit growth” in net income and revenues.
Launched in July, Vista City is the firm’s flagship project for the next few years. It is a 1,500-hectare central business district development in Las Piñas, 500 hectares of which or 45,000 units of residential households were already developed as of June.
Incorporated in 2007, Vista Land primarily deals in the real estate business, mostly in the low and middle cost segments, and has lately been working to diversify into the hotel business.