A strong demand for DoubleDragon’s Corp. P10-billion retail bonds resulted in oversubscription, prompting the property developer to end the offer period earlier.
The bond sale was supposed to last until Nov. 20 but the listed company had to cut it short by Nov. 18 because of “very high volume of orders surpassing the available allocation,” it said in a disclosure on Tuesday.
READ: DoubleDragon promises 8% yield for fresh P10-B bond offer
The fixed rate, peso-denominated debt paper has a tenor of 5.5 years and carry an interest rate of 8.008 percent per year.
“We seek the understanding of the investing public for cutting short the DD retail bond offer period due to oversubscription way ahead [of schedule],” the company said in a statement.
Wider base
DoubleDragon chair Edgar Sia said the offer’s outcome enables “DoubleDragon to capture an even wider stakeholder base into DoubleDragon’s ecosystem.”
Land Bank of the Philippines, RCBC Capital Corp. and Unicapital Inc. were tapped as joint issue managers, lead underwriters and bookrunners for the offer. They are also the selling agents, along with EastWest Bank.
The property developer has been beefing up its coffers via the debt market to support expansion across the country and abroad.
This is the second time the company is returning to the debt market this year after having completed a P10-billion issuance in July. The July bonds, which also promised a yield of 8.008 percent per year, will mature in three and a half years.
P30B thru 2026
Last month, DoubleDragon announced it was raising P30 billion until 2026 via a series of retail bond offerings.
Overseas, the property venture of tycoons Edgar Sia II and Tony Tan Caktiong had also previously announced that its Singapore-based unit, Hotel101 Global Pte. Ltd., was set to make its stock market debut in Wall Street later in the year. The company said its Nasdaq listing would allow it to accelerate its global expansion.
Construction of Hotel101’s Madrid branch, designed to have 680 rooms, is expected to be completed by the end of next year.
Last year, it also broke ground for a 482-room Hotel101-Niseko in Hokkaido, Japan. This project will rise on a 1.2-hectare property and will be built by Japanese contractor Iwata Chizaki, the same builder of Chitose International Airport in Sapporo. —Tyrone Jasper C. Piad