Strong demand seen for DoubleDragon share sale

Posted on March 29, 2016 10:07:00 PM

By Krista Angela M. Montealegre, Senior Reporter

DOUBLEDRAGON Properties Corp. enjoyed robust demand for its convertible preferred shares, as the real estate developer priced the high-yielding securities at the bottom of the range.

DOUBLEDRAGON Chairman and Chief Executive Edgar J. Sia II -- BW FILE PHOTO

DoubleDragon kicked off yesterday a plan to raise up to P10 billion from the sale of preferred shares, pegging the dividend rate at 6.4778% per annum -- the bottom end of the indicative range, the company said in a disclosure to the stock exchange yesterday.

The rate was 200 basis points above the simple average of the seven-year benchmark rates for the three consecutive days preceding pricing date, DoubleDragon said.

Demand reached over P26 billion at the low end of the price range, which is five times the base offer, the company said.

“[There is] strong demand because of very liquid market, attractive dividend rate, and good credit of DoubleDragon,” Jose Luis F. Gomez, president of RCBC Capital Corp., said in a mobile phone message yesterday.

Holders of the preferred shares may convert them to DoubleDragon’s common shares at a rate of one preferred share with a par value of P100 per share to one common share from the second to the fifth anniversary of the issue date, according to the registration statement.

Proceeds from the share sale will be mainly allotted for the development of its community mall chain under the brand CityMalls; DD Meridian Park, a 4.8-hectare (ha) mixed-use development in Pasay City; the Jollibee Tower, the future headquarters of the Jollibee group in Ortigas; and the Skysuites Tower, a 38-storey commercial, office and residential skyscraper at the corner of EDSA and Quezon Avenue.

“We think that the strong demand is due to the trusted confidence with the company’s ability to plan and execute its set goals,” Hannah H. Yulo, DoubleDragon chief investment officer and senior vice-president for corporate finance, said in a separate mobile phone message.

Prior to its initial public offering in 2014, DoubleDragon has announced its intention to develop 1 million square meters of leasable space. So far, the company has secured over two-thirds of the land bank to attain its target.

DoubleDragon plans to open 25 CityMalls a year, allowing the company to reach its 100-store goal by 2019 -- a year ahead of its 2020 target.

DoubleDragon is a joint venture between Injap Investments, Inc. of Edgar “Injap” Sia II and Honeystars Holdings Corp. of Tony Tan Caktiong, chairman and founder of Jollibee Foods Corp.

Shares in DoubleDragon lost 35 centavos or 0.89% to close at P39.10 each on Tuesday.

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OFW households saving, investing more – BSP

By Lawrence Agcaoili (The Philippine Star) | Updated March 28, 2016 - 12:00am

MANILA, Philippines – More households that received remittances from their loved ones abroad allocated portions of the inflows into savings and investments this quarter.

 Results of the latest Consumer Expectations Survey (CES) showed an increase in the number of overseas Filipino workers’ households allocating remittances for savings to 43.4 percent in the first quarter of the year from 41.4 percent in the fourth quarter of last year.

 Likewise, the number of households that allocated remittances for investments was steady at 6.5 percent.

 BSP deputy governor Diwa Guinigundo said the percentage of OFW households using remittances to save as of the first quarter was almost six times the 7.2 percent recorded in the first quarter of 2007 when the CES was launched.

 Likewise, Guinigundo said the percentage of OFW household investing remittances was almost three times the 2.3 percent level when the survey was first conducted.

 The latest survey showed the overall confidence index improved to -5.7 percent in the first quarter from -8.1 percent in the fourth quarter of last year, matching the all-time high of -5.7 percent booked in the second quarter of 2013.

 “They are more optimistic about the outlook and if the economic conditions are improving and the family financial situation is improving and they perceive their family income is improving then you can expect that they will continue to be more optimistic,” he said.

 “That can be translated into higher savings since they can afford to set aside a higher percentage of their income to save. And for those who have higher savings some have gone into actual investment,” Guinigundo added.

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FIVE FAKE PROFESSIONALS CONVICTED

 

Posted by PRC Baguio ICT Last Update: Monday, February 29, 2016

Five (5) fake professionals – a medical technologist, a criminologist, a civil engineer and two teachers -- were recently convicted by the courts to jail. In its year-end accomplishment report, the Professional Regulation Commission (PRC) – Baguio Regional Office claimed continued success in strictly enforcing professional regulatory laws to protect public health, welfare and safety. Upon PRC complaint, the courts sentenced the bogus professionals to prison terms up to four years and nine months with fines for falsification of public documents and one for perjury.

The fake professionals were caught trying to renew their forged Professional ID Cards while some submitted documents later found spurious when verified by the Civil Service Commission. During investigation by the National Bureau of Investigation, some admitted having paid fixers to have their test papers re-checked or reconsidered. After paying the fixers, they received by mail forged professional ID, official report of ratings, and certificate of registration. The 2015 convictions brings to ten (10) the number of convicted pseudo professionals since PRC Baguio began its campaign against fixers and syndicates.

PRC Regional Director Teofilo Gaius M. Sison, Jr. warned the public against fixers and reiterated the PRC policy that exam results are final -- no re-checking or reconsideration -- pursuant to PRC Resolution No. 204-223. He added that employers should verify first with PRC the documents submitted by applicants for employment or promotion. Sison also thanked the Civil Service Commission-CAR and the National Bureau of Investigation-CAR for their full support and cooperation in the campaign against bogus professionals.

Source : prcbaguio.blogspot.com

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Philippines to grow faster than neighbors – Moody’s

By Lawrence Agcaoili (The Philippine Star) | Updated March 23, 2016 - 12:00am

 

In a report titled “Growth outlook of ASEAN economies to diverge in 2016 and 2017,” Moody’s said the gross domestic product (GDP) of the Philippines would expand faster at six percent for 2016 and 2017. Philstar.com/File

MANILA, Philippines – Moody’s Investors Service said domestic demand-driven economies among member countries of the Association of Southeast Asian Nations (ASEAN) led by the Philippines are expected to grow faster than export-oriented economies in the next two years.

In a report titled “Growth outlook of ASEAN economies to diverge in 2016 and 2017,” Moody’s said the gross domestic product (GDP) of the Philippines would expand faster at six percent for 2016 and 2017.

The country’s GDP growth eased to 5.8 percent last year from 6.1 percent in 2014 due to weak global demand.

“Economic expansion in Indonesia and the Philippines would likely strengthen in 2016 and 2017, with domestic demand providing the main engine of growth,” Moody’s said.

The debt watcher said gross fixed capital formation growth is accelerating rapidly in the Philippines and is picking up pace in Indonesia.

“In each case, public investment contributed to the pickup as governments in both countries sought to gain further traction in developing much-needed infrastructure,” it added.

Moody’s said lower oil prices have provided greater lift to economic growth in the Philippines with household consumption growing in excess of six percent for only the second time over the past 25 years.

On the other hand, the debt watcher said Vietnam is expected to book the fastest GDP growth this year at 6.1 percent before slowing down to six percent in 2017.

 “Vietnam, meanwhile, will remain a regional growth outperformer on the back of robust manufacturing activity and strong foreign direct investment flows,” Moody’s said.

Indonesia’s GDP is expected to grow  4.8 percent this year and 5.4 percent next year.

However, Singapore, Thailand, and Malaysia are expected to post slower GDP expansion compared with Vietnam, the Philippines and Indonesia.

 “Against a backdrop of subdued global demand, the growth prospects of ASEAN’s major export-orientated economies, Singapore, Malaysia, and Thailand, will remain weaker than those of more domestic demand-driven economies, Indonesia and the Philippines in 2016 and 2017,” Moody’s said.

The debt watcher pointed out the overall economic impact of the slumping exports growth would vary based on the relative importance of trade to GDP.

Total trade accounts for 346 percent of GDP in Indonesia, 131 percent in Malaysia, and 130 percent In Thailand.

On the other hand, total trade accounts for 58 percent of GDP in the Philippines and 41 percent in Indonesia.

 “As such, these three economies are susceptible to a prolonged period of subdued global demand via both the export channel and weaker investment demand,” Moody’s added.

The rating agency explained private consumption in Singapore, Thailand, and Malaysia would be constrained by high household debt burdens.

“Household debt-to-GDP in these three economies has risen rapidly in recent years to elevated levels. Weaker household balance sheets could therefore weigh on banking sector asset quality, and limit the effectiveness of monetary policy in stimulating consumer spending,” it said.

Moody’s upgraded the country’s credit rating to Baa2 or two notches above “junk” status in December 2014 on the back of the government’s reduced debt levels and the country’s robust economy.

Standard & Poor’s has assigned a credit rating of “BBB” or two notches above “junk” status while Fitch Ratings rates the country’s debt at “BBB-“ or the first notch in investment grade ratings.

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