SEC Approves DoubleDragon Bonds Offering

MANILA, Philippines – DoubleDragon Properties Corp. (PSE:DD) gets a nod from the Securities and Exchange Commission (SEC) relative to its offering of a 10-year fixed rate bond offering.

On November 24, 2016, DoubleDragon obtains the approval of SEC for the registration of its 10-year fixed rate bonds worth P15 billion, which is proposed to be tendered in one or several phases. The securities from DD would be sold to the public, which would likely be in early December 2016. The bonds are scheduled to mature in 2026 after a decade from the current year.

The SEC assigned an Issue Credit Rating of PRS Aa to the issuance of securities. The PRS Aa-rated obligations are described to have very low credit risk and high quality. The capacity of the obligor in meeting the fiscal requirements on the obligation is highly strong.

The issuance of retail bonds is allowed in a three-year period, as stated in its shelf registration specifics. The first tranche of the bond offering is anticipated to be P5 billion with an option of oversubscription at another P5 billion. The balance of the retail bonds’ totality, which includes the over-subscription option’s remaining price regardless of whether it is fully exercised or not, will be deposited under a shelf registration. After filing, the amount will be issued in future tranches.

A large amount of bond offering proceeds will be allocated for the company’s capital expenditures. DD Meridian Park, Jollibee Tower, and CityMalls are among the projects financed with the help of core recurring returns.

Edgar “Injap” Sia II, DoubleDragon Chairman and Chief Executive Officer, stated that the fundraising is anticipated to cover the total costs of the company’s projects for it to accomplish the 2020 objective. DD’s goal is to expand its leasable space to one million square meters.

The major percentage of the proceeds will finance the 2017-scheduled plans. By 2018, the management is anticipating to accumulate sufficient revenues from its rental business in provincial community mall chain or CityMalls. Within 2018, the Metro Manila office projects, namely, Jollibee Tower in Ortigas CBD and DoubleDragon Plaza in DD Meridian Park, are expected to be completed.

This month, the company disclosed higher revenue during the third quarter. Nonetheless, the higher expenses and costs had limited its profit growth rate to a single digit.

The quarterly report of DD showed that its net income increased by five percent from P589.4 million to P616.8 million against last year’s third quarter record. Its revenues increased by 15 percent from P1.11 billion last year to P1.28 billion.

About the Author
The Stock Signals Philippines is the online news media arm of Equilyst Analytics. Inc., an SEC-registered stock market consultancy firm in the Philippines that guides Filipinos on long-term investing and short-term trading and offers mentoring services.

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