Property developer Vista Land & Lifescapes Inc. secured a P5.15-billion long-term debt to finance next year’s programmed capital spending and repay existing obligations.
Vista Land said in a disclosure to the stock exchange it obtained 10-year corporate notes worth P5.15 billion at a fixed-rate of 6.1879 percent per annum.
The property developer mandated China Bank Capital Corp. as the lead arranger.
Brittany Corp., Crown Asia Properties Inc., Camella Homes Inc., Communities Philippines Inc., Vista Residences Inc. and Starmalls Inc. are the subsidiary guarantors.
“The proceeds of the facility will be used to pre-fund the company’s 2017 capital expenditures and refinance its existing indebtedness, and for other general corporate purposes,” Vista Land said.
Vista Land, through wholly-owned offshore unit, raised $125 million in January this year from issuance of new debt notes due 2022.
Vista Land is one the leading integrated property developers in the country with presence in about 95 cities and municipalities across 36 provinces.
The company is currently focused on creating integrated urban developments combining lifestyle retail, prime office space, university town, healthcare, themed residential developments and leisure components.
It also intends to aggressively increase revenues from recurring income business.
The property firm owned by the Villar family plans to spend P18 billion to build 10 new malls over the next two years.
Vista Land posted an 11-percent increase in net income in the first nine months to P6.38 billion from P5.76 billion recorded in the same period last year, boosted by higher rental revenues.
Rental income in nine months to September grew 67 percent to P3.1 billion from P1.9 billion a year ago, driven by significant increase in leasable space.
Real estate sales also inched up 3 percent to P19 billion from P18.25 billion in the same period last year.