DoubleDragon Hikes Retail Bonds to Php5.3B
By Leslie D. Venzon
MANILA, Dec. 9 (PNA) -- Real estate developer DoubleDragon Properties Corp. has increased its retail bond issue to Php5.3 billion from the initial Php5 billion to meet strong demand.
DoubleDragon told the local bourse it would issue 10-year fixed rate retail bonds at 5.9721 percent per annum due 2026.
The company saw strong demand for the offer especially among retail investors, banks, pension funds, insurance companies and retirement funds.
The offer period, which started on Nov. 29, 2016, officially ended on Dec. 7, 2016. The retail bonds will be issued on Dec. 15, 2016.
The 10-year fixed rate retail bonds recently offered marked the first tranche to be issued from DoubleDragon’s Php15-billion bond shelf registration with the Securities and Exchange Commission (SEC).
The property developer intends to utilize the Php15 billion to fund core projects in the pipeline in relation to its goal of 1,000,000 square meters leasable space by 2020 and profit target of Php4.8 billion by 2020.
Philippine Rating Services Corp. (PhilRatings) assigned an Issue Credit Rating of PRS Aa to the said bond issuance.
Obligations rated PRS Aa are of high quality and are subject to very low credit risk. The obligor’s capacity to meet its financial commitment on the obligation is extremely strong. (PNA)