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Vista Land’s $150-M bond issue secures top rating

By Neil Jerome Morales (The Philippine Star) | Updated March 20, 2014 - 12:00am

MANILA, Philippines - The real estate holding unit of the Villar family has secured the highest bond score from Credit Rating and Investors Services Philippines Inc. (CRISP).

In a disclosure, Vista Land, which is looking to raise $150 million through bonds to pay existing debts, said it received the AAA issuer rating with a stable outlook from the debt watcher.

CRISP noted the company’s “leadership in the low-cost and affordable housing market, excellent financial performance, strong management team and a successful operating model.”

Vista Land is the holding company of five business units: luxury brand Brittany, upper middle income segment Crown Asia, Camella Homes, Communities Philippines and condominium builder Vista Residences. It will also roll out its socialized housing arm Lumina Homes Inc., that will sell homes at P1.5 million and below.

The country’s largest homebuilder is looking to refinance the $150.34 million in corporate notes that will mature on Sept. 30, 2015. The notes carry an interest rate of 8.25 percent per annum.

Vista Land will introduce to the market P28 billion worth of projects this year, two-thirds of which are under middle income brand Camella Homes.

In 2013, the country’s largest homebuilder launched 35 projects with an estimated value of P26.1 billion, 31 of which are in the low and affordable segment.

Vista Land also allotted P21 billion for capital expenditures this year, up 22 percent from P17.2 billion in 2013.

The company’s jumped 15 percent to a record P5.06 billion last year from P4.38 billion in 2012 as real estate sales climbed 23 percent to P20.02 billion.

In the past 38 years, the property firm has completed more than 250,000 housing units in 31 provinces and 64 cities and municipalities around the country.

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