DoubleDragon Properties Corp. is raising P9.7 billion in fixed-rate bonds to finance expansion plans.
DoubleDragon said in a disclosure to the stock exchange the bond offering would have a base offer of P6.5 billion, with an oversubscription option for another P3.2 billion.
The proposed issuance represents the second tranche of the P15-billion fixed-rate retail bonds previously approved by the Securities and Exchange Commission under a shelf registration program.
“This offering will be a good chance for retail bond investors to participate in a fresh name like DoubleDragon since we do not expect to be tapping the bond market again anytime soon beyond what is remaining on our shelf registration from last December,” DoubleDragon chief investment officer Hannah Yulo said.
Yulo said the proceeds were expected to fully cover the company development plans through 2020 for both office and retail portfolios. Philippine Rating Services Corp. issued a credit rating of PRS Aa for the second tranche bond issuance. Obligations rated PRS Aa are of high quality and are subject to very low credit risk.