DoubleDragon set to raise P15 B from 10-year bonds

MANILA, Philippines - The Securities and Exchange Commission has approved DoubleDragon Properties Corp.’s application for shelf registration covering P15 billion worth of 10-year fixed rate bonds to be offered in one or several tranches.

DoubleDragon will issue the initial tranche of the bonds in early December.

For the initial tranche, DoubleDragon is looking at offering P10 billion, or a base offer of P5 billion and another P5 billion for the oversubscription option.

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

Edgar “Injap” Sia II, chairman and CEO of DoubleDragon, said proceeds would fully cover the total capex requirements of the company to complete its 2020 goal of one million square meters of leasable space.

“Majority of the proceeds would 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.” Sia said.

DoubleDragon develops community malls under the CityMall brand and has found a niche in the retail property space in the Philippines by bringing shopping convenience to communities in the outer provinces.

Jollibee Tower and mixed-use project DD Meridian Park are targeted for completion in 2018 and 2020, respectively.

Other projects include The SkySuites Tower, with completion targeted in 2018, and DD Happy Homes, affordable houses in the range of $10,000 to $45,000.

Recently completed projects include WH Taft Residences, student apartments, and Dragon8 Mall.