DoubleDragon Corp. said Monday it ended the offer period for its bond sale five days ahead of schedule on strong demand from investors.
DoubleDragon said in a disclosure to the stock exchange the bond offering was fully subscribed on July 5, 2024, prompting it to shorten the offer period, which was originally scheduled to end July 10, 2024.
“We seek the understanding of the investing public for cutting short the DD retail bond offer period due to oversubscription way ahead,” the company said.
The company did not say how much it raised from the offering, but based on the filing with the Securities and Exchange Commission, it originally planned to issue P3 billion worth of fixed-rate bonds with an oversubscription option for another P3 billion.
The bonds carry an interest rate of 8.008 percent per annum. The bonds will be issued from the company’s P10-billion bond shelf registration program.
Double Dragon said that due to strong demand it plans to issue another tranche of retail bonds “very soon”.
“DoubleDragon has not issued any peso retail bond for over five years, and DD is extremely grateful to the unwavering support of the investing public on its return to the retail bond market,” the company 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 the 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 by 23.25 percent year-on-year as consolidated revenues hit P24.74 billion.
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.
