• DoubleDragon to issue P5.3-B retail bonds

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    LISTED DoubleDragon Properties Corporation is set to issue P5.3 billion worth of retail bonds, higher than its P5 billion base offer, amid strong demand.

    In a disclosure to the Philippine Stock Exchange on Friday, DoubleDragon said it decided to exercise an additional P300 million from the oversubscription option of its 10-year fixed rate retail bonds priced at 5.9721 percent per annum due 2026 through its joint lead underwriters.

    DoubleDragon said this was to accommodate strong demand received for the bonds.

    “The Company saw strong demand for the offer especially among retail investors, banks, pension funds, insurance companies and retirement funds,” DoubleDragon said.

    The offer period for the bonds began on November 29 and ended on December 7. Issuance of the retail bonds will be on December 15, the company said.

    The P5.3 billion retail bond issue 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 Php15 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 said bond issuance, which denotes high quality and very low credit risk. The rating also indicates that the obligor’s capacity to meet its financial commitment on the obligation is extremely strong.

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