The Securities and Exchange Commission (SEC) approved the P10-billion bond shelf registration program of DoubleDragon Corp., the company said in a disclosure to the stock exchange Monday.
DoubleDragon said it would issue P3 billion worth of bonds due 2028 with an over subscription option for another P3 billion as first tranche for the offering. The bonds will carry an interest rate of 8.008 percent per annum.
Offer period commenced on June 28, 2024 and will run until July 10, 2024.
The bonds will be listed in the Philippine Dealing & Exchange Corp. on July 16, based on the final prospectus posted on its website.
DoubleDragon said it planned to use the proceeds from the fund-raising activity to partially refinance the redemption of its P9.7-billion fixed rate bonds which will mature this month.
“We are glad to tap the peso retail bond market again after over five years. We believe that the pricing of this DD retail bond offering at 8.008 percent will enable a wide range of people to avail of the good coupon rate for a Triple A rated retail bond and given the minimum investment size of only P50,000,” said DoubleDragon chairman Edgar Sia.
“On top of that, 8 is also believed by many to be an auspicious or ‘swerte’ number and having two 8’s in the coupon rate could be even more auspicious,” he said.
The bonds obtained a PRS Aaa rating from the Philippine Rating Services Corp.
DoubleDragon hired RCBC Capital Corp., Unicapital Inc. and Development Bank of the Philippines as joint issue managers, joint lead underwriters, bookrunners and selling agents for this transaction.
DoubleDragon’s total equity is set to exceed P100 billion for the first time this year.
The upcoming DoubleDragon’s hotel unit Hotel101 Global listing in the USNasdaq Stock Exchange is also expected to further strengthen the company’s balance sheet.
DoubleDragon booked consolidated net income of P15.93 billion in 2023, up 23.25 percent year-on-year as consolidated revenues reached P24.74 billion in the same period.
The company has been aggressively expanding its leasing portfolio with the construction of provincial community malls, warehouse complexes, office buildings and hotels.
It has completed 1.3 million square meters of gross floor area from various leasing businesses.
