DoubleDragon lists P5.3-B bond issue

MANILA, Philippines - DoubleDragon Properties Corp., the joint venture between Mang Inasal founder Edgar “Injap” Sia II and Jollibee Foods Corp. Tony Tan Caktiong, made its debut in the bond market yesterday.

The company raised about P5.3 billion from the bond offering, exceeding the initial base size of P5 billion on the back of strong demand from retail investors, banks, pension funds, insurance companies and retirement funds.

During the listing ceremony of the bonds yesterday, PDS Group chairman and chief executive officer Cesar Crisol said the strong demand indicates investor confidence in DoubleDragon.

“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, Injap Sia and Tony Tan Caktiong, as successful builders of businesses and well-known brands loved by many of our fellow countrymen, Mang Inasal and Jollibee,” Crisol said.

Local debt watcher Philippine Rating Services Corp. assigned the newly issued retail bonds an issue credit rating of PRS Aa.

DoubleDragon issued the bonds with a coupon rate of 5.9721 percent per annum fixed for the next 10 years until they mature on Dec. 15, 2026.

This issuance marks the first tranche of the company’s three-year retail bond shelf registration approved by the Securities and Exchange Commission with an aggregate amount of P15 billion.

DoubleDragon expects to fully cover the capex requirements to complete its 2020 goal of developing one million square meters of leasable space.

Sia said the company has three years to utilize the remaining P10 billion under the shelf registration facility.

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.

It is targeting to open 100 CityMalls by 2020.

The company is also the developer of Jollibee Tower and mixed-use commercial and office project DD Meridian Park (in which DoubleDragon has a 70-percent stake). Both projects are expected for completion in 2018 and 2020, respectively.

Other projects include The SkySuites Tower, which is scheduled for completion in 2018; and the ongoing project DD Happy Homes or affordable homes in the range of $10,000 to $45,000.

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