Vista Land sets interest rate for bond issue

MANILA, Philippines — Vista Land & Lifescapes Inc., the property development arm of the Villar Group, has set the interest rate for its peso-denominated fixed-rate bonds.

In a disclosure to the Philippine Stock Exchange (PSE), Vista Land said the interest rate for its bonds due December 2026 had been set at 7.5426 percent per annum and at 7.6886 percent per annum for the bonds due December 2028.

Vista Land plans to issue P10 billion in bonds comprising of a base offer of P6 billion with an oversubscription option of up to P4 billion.

This represents the initial tranche of the P35 billion fixed rate bonds earlier registered under the Securities and Exchange Commission’s (SEC) shelf registration program.

The offer period will run from Nov. 21 to 29.

Vista Land has tapped China Bank Capital Corp., SB Capital Investment Corp. and Union Bank of the Philippines as the joint issue managers, joint lead underwriters, and joint bookrunners.

The company  has been rated AAA by local debt watcher Credit Rating and Investors Services Philippines Inc. (CRISP), while the bonds have been rated PRS Aaa by the Philippine Rating Services Corp. (PhilRatings), which are both the highest ratings assigned by PhilRatings and CRISP.

Vista Land posted a net income of P8.2 billion in the first nine months of the year, up by 70 percent from the same period in 2022.

As of the end of the third quarter, the company launched 28 projects with an estimated project value of about P40 billion.

Vista Land chairman Manuel Villar Jr. said the company is optimistic about its prospects for the rest of the year with the strong economic growth of 5.9 percent, coupled with sustained growth in overseas Filipino remittance and revenge spending from consumers.

The company’s consolidated revenue rose by 18 percent to P27.4 billion during the nine-month period. Real estate revenue returned to double-digit growth with a 17 percent increase to P12.2 billion, while rental income amounted to P11.8 billion.

Core net income (excluding the gain from insurance proceeds) increased by 30 percent to P6.8 billion.