DOUBLEDRAGON Properties Corp. on Friday said it raised P7.4 billion from the issuance of seven-year fixed-rate corporate notes, proceeds of which will be used for its development projects.
The company said that as a result of strong institutional demand, it increased the offering from the original amount of P6.5 billion.
“We are glad that the great long-term potential of the company has been recognized by investors,” company Chairman Edgar Sia II said in a statement. “This gave the whole management team more inspiration as it continues its efforts toward a sustained high-growth momentum.”
BDO Capital and Investment Corp. facilitated the notes issuance. The company said it executed bilateral term-loan agreements for the said issuance of unsecured loan.
Proceeds of the notes issue will be used to finance its development projects of a number of community malls in the country, including a branch in Meridian Park in Pasay, a shopping center in Divisoria in Manila, and its newly purchased condominium towers in Quezon City.
DoubleDragon earlier said the bulk of its revenues for 2014 will come on stream during the second half of the year. The company co-owned by the founders of the Jollibee and Mang Inasal fast-food chains said it is on track to meet its net-income target of P525 million for the year.
The company, which still has to open a mall, said its net income for the first half of the year reached P84.3 million, which is just 16 percent of its full-year target.
It plans to build about 100 community malls in populated areas of the country with a total leasable area of about 700,000 square meters.
DoubleDragon said it is targeting to reach a net income of P1 billion by 2016 and P4.8 billion by 2020, with its revenue streams coming mainly from the rental income of the malls and office buildings that it plans to build between now through 2020.