DoubleDragon Properties Corp. said it has signed a subscription agreement with Credit Suisse (Singapore) Ltd. as sole global coordinator, joint lead manager and joint bookrunner for its $75-million bond sale, together with PNB Capital and Investment Corp., as joint lead manager and joint bookrunner.
Proceeds of the bonds will used for capital expenditures in investment properties and refinancing of short-term loans.
The company said the bonds will be guaranteed and will have a five year tenor, carrying a coupon of 7.25 percent.
“The bonds are unrated and will be listed on the Singapore Exchange Securities Trading Ltd.,” it said.
“The proceeds of this new five-year $75 million bonds offering and the planned P16.97 billion REIT (real estate investment trust) IPO (initial public offering) are expected to significantly increase the cash position of the company,” DoubleDragon said.
DoubleDragon last week announced thefirst tranche of assets it plans to infuse into its own P17 billion REIT, eyed for the fourth quarter of the year
“The intended DD Meridian Park REIT (DDMP REIT) will consist of 7 buildings with a total area of 248,349 square meters. The estimated value of the basket of REIT assets stands at P50,889,814,608 and the company expects to generate P16.97 billion of proceeds from the planned REIT listing representing an offer of 33.33 percent of the selected REIT assets,” it said.
