PhilRatings assigns PRS Aa to the issue
LISTED property developer DoubleDragon Properties Corp. said it has been given the go signal by the Securities and Exchange Commission (SEC) to issue P15 billion worth of 10-year fixed rate bonds.
“Subject to the receipt from the SEC of the Permit to Sell Securities to the Public as well as the conclusion of the offer period, the 10-year fixed rate bonds will be issued early December, 2016 and will mature ten (10) years later in 2026,” the company said in a disclosure to the Philippine Stock Exchange on Friday.
The company noted that the bonds will be issued in one or several tranches.
Last September, DoubleDragon disclosed its plans for the said bonds.
“The Retail Bonds will be filed under a shelf registration that allows its issuance within a period of three years,” DoubleDragon said.
DoubleDragon said it intends to offer an aggregate principal amount of up to P5 billion with an oversubscription option of up to P5 billion for the first tranche of the shelf registration program.
“Any remaining balance of the aggregate principal amount of the Retail Bonds, including any amount remaining if the over-subscription option is not or is not fully exercised, shall be lodged under a shelf registration and will be raised in future tranches,” the company said.
The company also noted that the Philippine Rating Services Corporation (PhilRatings) assigned an Issue credit rating of PRS Aa to the bond issuance, which denotes high quality and very low credit risk.
The company said bulk of the proceeds of the bond issue will be used to fund the capital expenditures of its core recurring revenue-focused projects, particularly its CityMalls developments, DD Meridian Park and Jollibee Tower.
“We expect that this round of fundraise will fully cover the total capex requirements of the Company to complete [the]2020 goal of 1 million square meters of leasable space,” DoubleDragon chairman and chief executive officer Edgar Sia II said in a statement.
“Majority of the proceeds will be deployed in our projects within 2017 as by 2018 we expect to already have substantial rental revenues from our provincial community mall chain, CityMalls and our Metro Manila office projects such as Double Dragon Plaza in DD Meridian Park and Jollibee Tower in Ortigas CBD [central business district], both of which are expected to be completed within 2018,” Sia added.
Doubledragon posted a 6.6 percent rise in its net income in the first nine months of the year to P761 million from P713.6 million in the previous year as additional mall openings strengthened its rental revenues.