VISTA Land and Lifescapes Inc., the country’s biggest mass housing developing firm owned by former Senator Manny Villar, has set the stage this year for the Philippine real estate sector in raising corporate funds from the international debt market.
In a statement and a disclosure to the Philippine Stock Exchange on Thursday, Villar’s listed firm said its wholly owned subsidiary, VLL International Inc., has successfully raised $125 million from the issuance of senior guaranteed notes due in June 2022.
It said the bonds were made via the re-opening of existing 7.375 percent notes also due in June 2022.
The notes are from its Medium Term Note Program and were issued at a cash price of 102.000, representing a yield of 6.979 percent per annum.
The company said the transaction was the first US-dollar bond offering from an Asean firm this year, and the first non-China, US-dollar, high-yield bond out of Asia in 2016.
“Vista Land re-opened the Philippines real estate space in the international debt capital markets, setting a benchmark for further issuances,” Vista Land’s disclosure said.
Vista Land’s recent bond issuance followed a three-day roadshow in Singapore, Hong Kong, and London, where the firm was able to steer market volatility in the first few weeks of the year, and “captured a window to execute the deal.”
The company said the deal was well received, as offshore investors received 60 percent of the allocation.
DBS Bank Ltd. and HSBC acted as joint lead managers and book runners, while BDO Capital & Investment Corp. and China Bank Capital Corp. acted as joint domestic lead managers.
Vista Land said proceeds of the bond issue would be used to fund capital expenditure and for general corporate purposes.