DOUBLEDRAGON Properties Corp. raised P9.7 billion from the sale of the second tranche of fixed rate retail bonds after exercising the oversubscription option of the issue.
DoubleDragon tapped the overallotment option of P3.2 billion on the back of strong investor demand, the real estate developer said in a disclosure to the stock exchange.
The sale of seven-year bonds forms part of a P15-billion shelf registration previously approved by the Securities and Exchange Commission. The company issued the first tranche last December through a P5.3-billion bond issuance.
“This marks a momentous moment for DoubleDragon as the company has now fully funded all of its capex requirements for our 2020 vision to complete one million square meters of prime commercial leasable space across the Philippines,” Hannah M. Yulo, Chief Investment Officer of DoubleDragon, was quoted in the statement as saying.
The retail bonds were issued at a fixed coupon rate of 6.0952%. Similar to the first tranche, Philippine Rating Services Corp. issued a credit rating of PRS Aa to this round of retail bonds due 2024.
BDO Capital & Investment Corp., RCBC Capital Corp., Maybank ATR Kim Eng Capital Partners, Inc., and BPI Capital Corp. were tapped as joint lead underwriters of the issue.
“The last three years have been incredibly exciting for the DoubleDragon team, growing from a small start-up company barely a few years back, to the company that it is today. We will continue to strive hard to become one of the most durable and relevant property players in the country,” DoubleDragon Chairman Edgar “Injap” Sia II said.
DoubleDragon has earmarked the proceeds from the offer for its expansion, which includes the development of community mall chain CityMalls, DD Meridian Park in Pasay City, and Jollibee Tower in Ortigas Center. The projects would allow the developer’s leasable portfolio to reach a total of one million square meters by 2020.
DoubleDragon posted a net income of P165.7 million in the first three months of 2017, soaring 280% year on year on the back of consolidated revenues of P649 million. The company attributed the growth to real estate sales which jumped 66% to P400 million, as well as the 129% rise in rental income to P104.5 million.
DoubleDragon is a joint venture between Injap Investments, Inc. of Mr Sia — the founder of the Mang Inasal grilled chicken restaurant chain — and Honeystars Holdings Corp. of Tony Tan Caktiong, chairman and founder of Jollibee Foods Corp.
Shares in DoubleDragon added 30 centavos or 0.64% to close at P47.20 each on Friday. — Krista Angela M. Montealegre