DoubleDragon Properties Corporation entered the local bond market on Thursday with its maiden P5.3-billion retail bond listing on the Philippine Dealing and Exchange (PDex) Board.
The 10-year fixed-rate retail bonds due 2026 exceeded the initial P5 billion base offer on strong demand from the market, the developer said.
“The issuance exceeded the initial base size of P5 billion as it was met with strong demand from retail investors, banks, pension funds, insurance companies and retirement funds alike,” the company said in a statement.
Philippine Dealing System Holdings Corp. and Subsidiaries (PDS) Chairman and Chief Executive Officer Cesar Crisol said the strong demand for the bonds shows the confidence of investors in the company’s principals.
“The issue generated investor demand strong enough for the company to exercise some of its oversubscription option which signals investors’ positive views on DoubleDragon,” Crisol said.
“This also indicates the level of investor trust and appreciation of the firm’s two principals, Edgar ‘Injap’ Sia II and Tony Tan Caktiong, as successful builders of the businesses and well-known brands loved by many of our fellow countrymen, Mang Inasal and Jollibee,” Crisol added.
DoubleDragon said the retail bonds were issued at a coupon rate of 5.9721 percent per annum fixed for the next 10 years until its maturity on December 15, 2026.
“Due to the substantial demand for the retail bonds, the coupon was priced at the lowest end of the pricing range set by its Joint Issue Managers and Joint Lead Underwriters, BPI Capital Corp. and RCBC Capital Corp.,” the company said.
The P5.3 billion worth of 10-year fixed-rate retail bonds is the first tranche of the company’s P15 billion bond shelf registration program, which was recently approved by the Securities and Exchange Commission (SEC).
“The entire amount of P15 billion recently approved by the SEC is expected to complete the fund requirements of all of the Company’s core projects in the pipeline in relation to its goal of 1,000,000 sqm leasable space by 2020 and profit target of P4.8 billion by 2020,” DoubleDragon said.
Philippine Rating Services Corporation (“PhilRatings”) earlier assigned an Issue Credit Rating of PRS Aa to the bond issuance, which denotes high quality and very low credit risk.
“The obligor’s capacity to meet its financial commitment on the obligation is extremely strong,” the ratings agency said.