Double Dragon eyes to raise P6.5B from 2nd tranche of retail bond issuance

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MANILA – Property developer Double Dragon targets to raise at least P6.5 billion from the issuance of the second tranche of its fixed rate retail bonds.

In a disclosure with the Philippine Stock Exchange (PSE) Thursday, the listed firm said the issuance, which has an oversubscription size of P3.2 billion, is part of the P15 billion fixed rate retail bond filed under shelf registration and approved by the Securities and Exchange Commission (SEC).

Proceeds of the bonds will be primarily used to finance capital expenditures on the company’s projects namely CityMalls, DD Meridian Park, and Jollibee Tower, it said.

DoubleDragon Chief Investment Officer Hannah Yulo their latest bond issuance “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.”

“Once completely taken up, the proceeds are expected to fully cover our development plans through 2020 for both our office and retail portfolios,” she added.

“The remaining P9.7 billion in fixed rate retail bonds under shelf registration previously approved by the SEC is intended to fully fund the remaining capex requirements for the completion of the planned 1 million square meters of leasable space DoubleDragon anticipates to have in its portfolio by 2020,” it said.

DoubleDragon chairman and CEO Edgar Sia II said the company is set to open 10 more CityMalls around the country in the next three months to bring their total malls to 30 by end-2017 “making CityMall the dominant community mall player in the Philippines.”

He said the company’s flagship commercial and office project in Metro Manila, DobuleDragon Plaza at DD Meridian Park along Macapagal Blvd. in Pasay City is expected to be completed in the last quarter of 2017, ahead of schedule.