SEC Approves DoubleDragon’s 10 Year Fixed Rate Bond Offering

Pasay—(PHStocks)—The Securities and Exchange Commission (SEC) approved on 24 November 2016 DoubleDragon Properties Corp.’s (PSE: DD) application for registration covering PhP15 Billion worth of 10 Year Fixed Rate Bonds to be offered in one or several tranches.

Subject to the receipt from the SEC of the Permit to Sell Securities to the Public as well as the conclusion of the offer period, the 10 Year Fixed Rate Bonds will be issued early December, 2016 and will mature ten (10) years later in 2026.

For more details on the planned issuance, below is a copy of the previous disclosure filed September 21, 2016 on the subject matter:

DD to Offer 10-Year Fixed Rate Retail Bonds

The Board of Directors of DoubleDragon Properties Corp. has approved the offering and issuance of Ten (10) year Fixed Rate Retail Bonds due 2026 of up to fifteen billion pesos (PhP15,000,000,000) to be issued in one or several tranches. Philippine Rating Services Corp. (PhilRatings) assigned an Issue Credit Rating of PRSAa to the said bond issuance. Obligations rated PRSAa 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.

The retail bonds will be filed under a shelf registration that allows its issuance within a period of three years. The company intends to initially offer the first tranche of the retail bonds with an aggregate principal of up to PhP5 billion with an over subscription option of up to PhP5 billion. Any remaining balance of the aggregate principal amount of the retail bonds, including any amount remaining if the over-subscription option is not or is not fully exercised, shall be lodged under a shelf registration and will be raised in future tranches.

Bulk of the proceeds of the bonds will be used to finance capital expenditures of DoubleDragon’s core recurring revenue focused projects: CityMalls, DD Meridian Park, and Jollibee Tower.

“We expect that this fundraise will fully cover the total capex requirements of the company to complete 2020 goal of 1 million square meters of leasable space. 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 DoubleDragon Plaza in DD Meridian Park and Jollibee Tower in Ortigas CBD, both of which are expected to be completed within 2018,” said Edgar “Injap” Sia II, Chairman and CEO of DoubleDragon.

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