Vista Land & Lifescapes Inc., the listed property firm of former Senator Manuel Villar, has tapped largely foreign investors to raise P5.45 billion ($125 million) by selling a subsidiary's five-year notes to finance capital spending next year.
The order book went over $300 million, mostly from foreign investors, showing the strong demand for VLL International Inc.'s $125 million guaranteed notes due 2019, Vista Land investor relations officer Brian Edang told GMA News Online.
"Only about 9 percent were local demand," he said.
In a disclosure to the Philippine Stock Exchange Thursday, Vista Land said DBS Bank Ltd. distributed 91 percent of the notes outside of the Philippines to a broad range of international investors.
DBS Bank Ltd. is the sole global coordinator and sole lead manager of the issuance.
Vista Land said VLL International will issue the notes on September 11, at an issue price of 102 percent of their principal amount plus accrued interest, representing a yield-to-maturity of 6.935 percent.
The five-year notes are guaranteed by Vista Land and its subsidiaries Brittany Corp., Crown Asia Properties Inc., Camella Homes Inc., Communities Philippines Inc., and Vista Residences Inc.
Edang said the money will be used to finance the capital expenditures for next year. "We're already finished with the requirements this year," he added.
The latest offering completes the $225 million, 7.45 percent senior guaranteed notes due 2019 which the VLL International started last April 23, and brought the total offering to $350 million.
Edang said the company was able to reduce the yield rate to 6.935 percent from 7.45 percent. "It's good for the company," he said.
VLL International intends to list the notes on the Singapore Exchange Securities Trading Limited.
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