VISTA LAND & LIFESCAPES, Inc. has received a three-year corporate note facility of up to P12 billion that it will use to refinance its obligations, the Villar-led real estate developer said Thursday.
In a regulatory filing, the listed company said it had made an initial drawdown of P8.6 billion at a fixed rate of 7.93% per annum.
“Proceeds from the corporate note facility will be used to refinance existing or maturing obligations of the group and for other general corporate purposes,” the company said.
The company has BDO Capital & Investment Corp. and China Bank Capital Corp. as Lead Arranger and Bookrunner and the Union Bank of the Philippines as Joint Lead Arranger. China Bank Corp.-Trust and Asset Management Group is the establishment agent.
Vista Land’s subsidiaries, Brittany Corp., Crown Asia Properties, Inc., Camella Homes, Inc., Communities Philippines, Inc., Vista Residences, Inc. and Vistamalls, Inc. are all guarantors of the Company. Vista Land operates its residential and commercial real estate development business through six business units.
Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said that as the economy reopens further to greater normalcy, businesses will have more clarity and determination in securing their needed financing or financing facilities.
“[This] is also amid the need to hedge borrowing needs amid rising trends in global and local interest rates, as seen in higher inflation in recent months,” added Mr. Ricafort.
The corporate note facility would allow Vista Land to raise more funds from a more diverse group of investors or lenders because the securities are tradable.
“[It] is part of the evolution of the capital market…with more alternative sources of funding than traditional lending,” said Mr. Ricafort.
Vista Land, which claims to be the largest homebuilder, last month reported a 12% increase in net income to 6.7 billion pesos for the nine months to September.
The company said it had launched 12 projects with an estimated value of about 21.8 billion pesos as of the third quarter of this year. It also announced plans to start additional projects from its Vista Estate integrated development.
On Thursday, the company’s shares rose 6.45% to close at P1.65 a share. — Justine Irish D. Tabile