LISTED DoubleDragon Properties Corporation has set the coupon rate on its recently approved 10-year fixed rate retail bond offering at 5.9721 percent per annum, the company announced on Tuesday.
In a disclosure to the Philippine Stock Exchange, DoubleDragon said the interest on the bonds is payable on a quarterly basis every 15th day of March, June, September and December until its maturity.
The initial offer size will start at a base size of P5 billion with an oversubscription option of another P5 billion and will be offered at a minimum denomination of P50,000 and in multiples of P10,000 thereafter, DoubleDragon said.
The offer period will run through December 7, while the issue date will be on December 15.
“The bonds will mature on 15 December 2026, ten years after issue date,” the company said.
DoubleDragon said last week that the Securities and Exchange Commission (SEC) has approved its application to issue P15 billion worth of 10-year fixed rate bonds. It said it received a ‘Certificate of Permit to Offer Securities for Sale’ from the SEC dated November 28.
It said 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.
DoubleDragon 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 the 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, both of which are expected to be completed within 2018,” Sia added.