DoubleDragon Corp. said Wednesday it plans to raise P30 billion over the next three years from the issuance of fixed-rate bonds.
DoubleDragon said in a disclosure to the stock exchange its board of directors approved the creation of a P30-billion bond-shelf registration program to be issued in three or more tranches in 2024, 2025 and 2026.
The company is preparing an initial P5-billion retail bond offering in the fourth quarter of 2024.
The company expects to issue the retail bond offerings in at least three tranches at 5 to 7-year tenors, given the downtrend in the local interest rates.
Rates are expected at around 8 percent per annum for the 2024 issuance, 7 percent for 2025 issuance and 6 percent for 2026 issuance.
“The pipeline capital-raising issuances at this stage of DoubleDragon’s growth is intended to further boost its financial position through further increasing its cash position,” DoubleDragon said.
DoubleDragon has built a significant hard asset portfolio, totaling 1.3 million square meters of completed gross floor area over the past 10 years since its listing on the Philippine Stock Exchange in April 2014.
DoubleDragon expects these assets to start generating steady revenue for the company by 2025, without needing major new investments.
The company is also expanding its hotel portfolio under the Hotel101 brand both here and abroad. Overseas, it secured properties in Japan, Spain and the United States for its hotel projects.
It is also preparing for the upcoming Hotel101 global listing in the US, which would further strengthen the company’s balance sheet.
DoubleDragon’s net debt-to-equity ratio was 0.69x, well below its ceiling as of June 30, 2024.
Total assets reached P191.29 billion, while total equity rose to P95.15 billion, positioning the company to exceed P100 billion in equity for the first time.
DoubleDragon is co-chaired by businessmen Edgar Sia II and Tony Tan Caktiong, the founder of Jollibee.
