Pasay—(PHStocks)—DoubleDragon Properties Corp. (PSE: DD) has successfully tapped the retail bond market with its maiden issuance, boosting the company’s cash position with PhP5.3 billion worth of 10 year Fixed Rate Retail Bonds due 2026 which listed today on the PDEx Board.
The issuance exceeded the initial base size of Php 5 Billion as it was met with strong demand from retail investors, banks, pension funds, insurance companies and retirement funds alike. The Philippine Rating Services Corp. (PhilRatings) assigned the newly issued Retail Bonds an Issue Credit Rating of PRS Aa.
The retail bonds were issued at a coupon rate of 5.9721% per annum fixed for the next 10 years until its maturity on December 15, 2026. Due to the substantial demand for the retail bonds, the coupon was priced at the lowest end of the pricing range set by its Joint Issue Managers and Joint Lead Underwriters, BPI Capital Corp. and RCBC Capital Corp.
PDS Group Chairman and CEO Cesar Crisol said: “This issue generated investor demand strong enough for the company to exercise some of its oversubscription option which signals investors’ positive views on DoubleDragon. This also indicates the level of investor trust and appreciation of the firm’s two principals, Edgar “Injap” Sia II and Tony Tan Caktiong, as successful builders of businesses and well-known brands loved by many of our fellow countrymen, Mang Inasal and Jollibee.”
The listing ceremony was attended by DoubleDragon’s Chairman and Co-Chairman, Edgar “Injap” Sia II and Tony Tan Caktiong, respectively, together with other DoubleDragon Directors and Officers: President-Ferdinand Sia, Treasurer & CFO-Rizza Marie Joy Sia, and CIO-Hannah Yulo. Representatives from the PDEx included its Chairman and CEO Cesar Crisol, President & COO Antonino Nakpil and PDTC President and COO Theresa Ravalo. Also present from the Joint Issue Managers and Joint Lead Underwriters were BPI Capital Corp. Co-Heads John Syquia and Reginald Cariaso together with Managing Director Eric Luchangco as well as RCBC Capital Corp. President and CEO Jose Luis Gomez and Vice President Xavier Zialcita.
This issuance marks the first tranche of the company’s 3-year retail bond shelf registration approved by the Securities & Exchange Commission (SEC) with an aggregate amount of PhP15 billion, which the company expects to fully cover the capex requirements to complete its 2020 goal of developing 1 million square meters of leasable space.