DoubleDragon sets 2nd bond tranche coupon at 6%

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PROPERTY developer DoubleDragon Properties Corp. said on Thursday it has set a coupon rate of 6.0952 percent per year for its seven-year peso-denominated fixed retail bonds.

The retail bond issue will have a base size of P6.5 billion and an oversubscription allotment of P3.2 billion.

The offer period for the retail bonds will run from July 7 to 13, 2017 subject to the receipt of the permit to sell from the Securities and Exchange Commission (SEC). The bonds will be officially issued on July 21.

DoubleDragon’s bond issuance is the second tranche to be offered from the P15 billion under shelf registration which was approved by the SEC last year.


“The coupon rate was set at the bottom-end due to strong demand for the retail bonds,” the company said in a disclosure to the Philippine Stock Exchange.

The company has tapped BDO Capital & Investment Corp., RCBC Capital Corp., Maybank ATR Kim Eng Capital Partners, Inc., and BPI Capital Corp. as its joint lead underwriters for the said issuance.

Last year, DoubleDragon issued the first tranche of the bond program amounting to P5.3 billion due 2024. It was rated with an issue credit rating of PRS Aa by the Philippine Rating Services Corp. (PhilRatings).

Obligations rated PRS Aa are of high quality and are subject to very low credit risk as the company’s capacity to meet its financial commitment on the obligation is extremely strong.

PRS Aa is the second highest rating category on PhilRatings’ existing credit rating scale.

For the second tranche, PhilRatings said it has assigned a positive outlook rating, which means the company has the potential for the present credit rating to be upgraded in the next 12 months.

DoubleDragon said it is gearing up to become one of the most relevant companies in the Philippines.

“[We aim] to accumulate a total of 1 million square meters of prime leasable space by 2020, which is expected to provide the company with strong recurring revenues backed by a string of appreciating hard assets located in commercial areas across Luzon, Visayas and Mindanao,” it said.

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