Listed property development firm Vista Land & Lifescapes, Inc. successfully debuted in the offshore debt capital markets with a $100 million five-year unsecured bond issue.
In a disclosure to the Philippine Stock Exchange, Vista Land said the bond issuance, which was priced last Friday, carried a coupon of 8.25 percent a year.
“We are very pleased with the response of the investor community on our inaugural bond issue. This is a vote of confidence in our company from the local and international investing community,” said Vista Land chief financial officer Paolo Villar.
Morgan Stanley and UBS AG acted as joint lead managers and bookrunners for the transaction. BDO Capital acted as domestic manager.
Vista Land’s maiden issue is part of an overall financing strategy which should allow the company to diversify its sources of funding.
“The company wanted to take advantage of strong positive sentiment in the international debt market”, said UBS managing director Lauro Baja.
Morgan Stanley executive director Mark Frondoso added that “the transaction should raise the company’s profile with both foreign and local investors.”
Shares of Vista Land have appreciated sharply over the last few months. Various equity analysts have put in “buy” recommendations on the stock.
Most recently, Credit Lyonnais Securities Asia (CLSA) released a report reiterating its “conviction buy” rating with a target price of P4.61 per share. VLL closed at P3.48 on Friday.
Vista Land is the country’s leading homebuilder and has a geographic presence around the Philippines. It caters to practically all income segments of the real estate market through its four brands’’ Brittany, Crown Asia, Camella, and condominium developer Vista Residences.
The firm is also seeking shareholder approval to create a new class of voting preferred shares to allow more foreign and local investment in the company.
Vista Land is amending’ its articles of incorporation to reclassify one billion common shares with a par value of P1 apiece into 10 billion preferred shares, with a par value of P0.10 per share.
“The new authorized capital stock of the company and the creation of preferred shares will enable the company to carry out further equity fund raising by allowing additional foreign and domestic investment,” Vista Land said.
The firm has just declared a cash dividend of P0.054 per share with a total value of P459.88 million, equivalent to 20 percent of the company’s consolidated net income as of December 31, 2009.
The record date is September 30, 2010, and payment date is October 26, 2010.
Vista Land has announced a spate of expansion and other developments in most of its market segments notably in vertical, low-rise and mid-rise properties.
It is all set to roll out new vertical development projects, which would bring the total value of its vertical units to P12.5 billion by next year.
It is also easing into commercial property development via its existing master-planned communities, which also signals its entry into the leasing business.
For details on Vista Land properties, please contact Reby Ramirez @ +63 916.4044.555 / +63 922.883.9308 / +63 919.699.3572 or e-mail her at reby_ramirez@yahoo.com.
Source: Manila Bulletin, 27 September 2010
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