Pasay—(PHStocks)—On July 5, 2017, DoubleDragon Properties Corp. (PSE: DD) set the coupon rate for its 7 Year peso-denominated Fixed Rate Retail Bonds at 6.0952% p.a. Due to strong demand for the Retail Bonds, the coupon rate was set at the bottom-end of the pricing range. The Bond Issuance will have a base size of PhP6.5 billion with an option to issue an additional PhP3.2 billion in oversubscription. The offer period for the Retail Bonds will run from July 7 to July 13, 2017 subject to the receipt of the Permit to Sell from the Securities and Exchange Commission (SEC). The retail bonds are set to be issued on July 21, 2017.
This Bond Issuance marks the second tranche to be offered from DoubleDragon’s PhP15 billion shelf-registered retail bond approved by the SEC last year. Similar to the first tranche amounting to PhP5.3 billion issued last December 15, 2016, the Philippine Rating Services Corp. (PhilRatings) assigned an Issue Credit Rating of PRS Aa to this round of Retail Bonds due 2024.
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. PRS Aa is the second highest rating category on PhilRatings’ existing credit rating scale. PhilRatings has likewise assigned a Rating Outlook of Positive to Double Dragon’s credit rating for this proposed debt issue. PhilRatings has defined a Positive Outlook as issuances that have a potential for the present credit rating to be upgraded in the next 12 months.
The joint lead underwriters of the Retail Bonds are BDO Capital & Investment Corp., RCBC Capital Corp., Maybank ATR Kim Eng Capital Partners Inc., and BPI Capital Corp.
DoubleDragon is gearing up to become one of the most relevant companies in the Philippines and aims to accumulate a total of 1 million square meters of prime leasable space by 2020, which is expected to provide the company with strong recurring revenues backed by a string of appreciating hard assets located in commercial areas across Luzon, Visayas and Mindanao.