Vista Land secures funding for P10-B maturing bonds – BusinessWorld Online
VILLAR-LED property developer Vista Land & Lifescapes, Inc. has secured financing to settle P10 billion in retail bonds that matured on Wednesday.
The financing came in the form of shareholder advances, Vista Land said in a regulatory filing.
The P10-billion Series E fixed-rate retail bonds, which had a 5.5-year tenor with quarterly coupons priced at 5.6992% per annum, were issued in December 2019. The offering was twice oversubscribed compared to the initial P5-billion target.
In May, Vista Land subsidiary VLL International, Inc. obtained a $150-million syndicated term loan facility from Sumitomo Mitsui Banking Corp. at an interest rate of 6.40509% per annum.
The proceeds from the loan facility will be used to finance, refinance, or reimburse (directly or indirectly) working capital and general corporate purposes of the Vista Land Group.
For the first quarter, Vista Land reported a 4% increase in attributable net income to P2.96 billion.
Total revenues rose by 3.9% to P10.65 billion, driven by a 5% increase in real estate sales to P5.85 billion.
“(The higher revenue from real estate sales) was primarily attributable to the increase in the overall completion rate of sold inventories of some of its business units as well as the recognition of the significant financing component for the period,” Vista Land said.
On Wednesday, Vista Land shares gained 0.61% or one centavo to close at P1.64 each. — Revin Mikhael D. Ochave