Vista Land raises $350M from overseas bond sale
Vista Land & Lifescapes Inc. of bilyonaryo Manuel Villar successfully raised US$350 million through an international offering of seven year bonds due 2024.
The order book came in at $1.7 billion or nearly five times the targeted size. The bonds have been priced at 5.75 percent or 37.5 basis points tighter than their guidance on strong demand from investors. This is the lowest coupon achieved by the company on the offshore bond markets.
“The ability of Vista Land to price much tighter is a testament to the credit profile of the company, and the confidence it enjoys from offshore investors who continue to support their issuances.” said Wick Veloso, president and CEO of HSBC.
There were 121 accounts that participated in the transaction, with 87 percent coming from Asia, and 13 percent from EMEA (Europe, Middle East, Africa).
In terms of investor type, 72 percent were fund managers / asset managers, 16 percent were banks, and private banks and the remaining 12 percent comprised institutional accounts.
This is the largest size raised by Vista Land on a primary issuance.The proceeds from the offering will be used primarily for refinancing.
“The new bond issue, coupled with a liability management transaction, allows Vista Land to reduce our short term refinancing risk, extend our maturity duration and realize interest expense savings. It also provides us an opportunity to continue diversifying our sources of funding, ensuring we continue to build key relationships not only with our investors onshore, but also with investors from Europe and Asia,” said Manuel Paolo Villar, president and CEO of Vista Land.
DBS Bank Ltd. and HSBC were the joint Lead managers and bookrunners for the offering.