DoubleDragon raises P5.3B from bond debut

Property developer DoubleDragon Properties Corp. has raised P5.3 billion from its domestic bond debut, boosting funds for projects that will generate recurring income.

In a disclosure to the Philippine Stock Exchange on Friday, DoubleDragon said it would issue and list the 10-year retail bonds yielding 5.9721 percent per annum on Dec. 15.

“The company saw strong demand for the offer especially among retail investors, banks, pension funds, insurance companies and retirement funds,” the disclosure said.

“The substantial build up of demand triggered DoubleDragon, through its joint lead underwriters, to exercise an additional P300 million from the oversubscription option to accommodate the orders, which exceeded the initial base offer size of P5 billion,” it added.

This forms the first tranche of DoubleDragon’s P15-billion bond sale program approved by the Securities and Exchange Commission under a three-year shelf registration program.

The shelf registration mechanism under the SEC allows an issuer like DoubleDragon to register and sell under the same prospectus and other regulatory filing requirements a certain volume of securities that the issuer does not intend to use up right away.