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MANILA - The property company of Senator Manuel Villar is seeking regulatory approval for the sale of HomeBuilder Bonds, a vehicle for prospective homebuyers to save money they can use to finance future home downpayments.
In a statement, Vista Land & Lifescapes Inc. said it recently filed with the Securities and Exchange Commission its registration statement and prospectus for the issuance of HomeBuilder Bonds amounting to P2.5 billion.
The bonds will be issued in tranches, with the first tranche of up to P500 million set to be launched in the second half of this year.
Proceeds from the offering will be used for general corporate purposes.
The bonds will enable Vista Land’s existing and prospective customers with an alternative investment vehicle which should also assist and encourage them to purchase the company's horizontal and vertical residential products.
"We are excited with the maiden launch of our P2.5 billion HomeBuilder Bond series. We believe that this vehicle, as we have structured it, is very well-suited to the needs of our custom base and our product profile," said Manuel Paolo Villar, Vista Land president and chief executive officer.
"Through the HomeBuilder Bond, we hope to greatly assist our customers in fulfilling their dream of owning a house. It is consistent with Vista Land's mission of providing a home for every Filipino," he added.
The minimum subscription under the HomeBuilder Bond is P180,000, payable in 36 equal monthly payments of P5,000. At maturity, the bondholder will have the option to either apply the investment proceeds for purchase of a Vista Land property or opt for a cash payout.
Vista Land also provides bonus credits which can be applied as payment for a residential unit if they are able to fulfill certain investment requirements. The HomeBuilder Bonds will have a tenure of three years, extendible to five years at the option of the bondholder.
Indicative interest rate for the first tranche ranges from 5-6.75 percent per annum. The real estate firm has tapped Investment & Capital Corporation of the Philippines as financial adviser and issuer manager for the offering.
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