VLL International Inc. (VLL), the foreign investment unit of Villar-led Vista Land and Lifescapes Inc., will be infusing additional bonds to its previously issued $225 million debt notes to raise more funds to partly finance its P21.6 billion capex this year.
Without disclosing any amount, VLL said its board of directors has approved the issuance of additional dollar-denominated bonds on top of the firm’s $225 million debt notes issued last April 29.
“[VLL] expects to offer additional US dollar-denominated notes which, upon issuance, will be fungible with and will be consolidated and form a single series with the 7.45 percent senior guaranteed notes due 2019, issued by VLLI on April 29,” Vista Land said in the statement.
VLL issued single-series bonds on April 29, amounting to $225 million, with an interest rate of 7.45 percent to mature in 2019.
“Most of the previous $225 million funds raised earlier was used in refinancing debts. But now, the additional bond offering to be incorporated to the $225 million will be for capex,” a company representative said in a phone interview, adding that the firm is still finalizing the terms of the additional bond offer.
The additional bond issuance will partly finance the rest of the P21.6 billion capex for the second half of 2014, as the company already spent 48 percent or P10.4 billion of the allotted capex in the first six months of the year.
Of the P10.4 billion utilized capex, P2.6 billion was spent for land acquisition, P2.1 billion for land development, and P5.7 billion for construction.
The debt notes 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 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.
The property firm has 1,933.1 hectares of land bank as of the first half, of which 83 percent is owned by Vista Land while 17 percent is held through joint ventures.
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, are already developed as of June.
Vista Land has P50 billion capex for the first five years to develop Vista City, a 25-year project, which stretches from Muntinlupa to Las Piñas, Cavite and Laguna.
Incorporated in 2007, Vista Land primarily engages in real estate business, mostly in low and middle cost segments, and has been recently working to diversify into the hotel business. Kristyn Nika M. Lazo