DoubleDragon sets P10B retail bond offer price at 7.77%  

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By RUELLE CASTRO

DoubleDragon Corp. (DD) aims to raise up to P10 billion via a retail bond offering in the first quarter to increase its cash position and keep its balance sheet strong.

The company’s seven-year bonds are priced at a coupon rate of 7.77 percent per annum, DD told the Securities and Exchange Commission.  

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The company seeks to issue an initial P5 billion, with another P5 billion as an option in case of an oversubscription.

“This Retail Bond Offering expected in the first quarter of 2025 will become the second tranche of its (P30 billion) Bond Program set and approved by the SEC via shelf registration in 2024,” the company said.

This will be the company’s only retail bond issue for the year since the final third tranche is scheduled for next year.

“The pipeline capital-raising issuances at this stage of DoubleDragon’s growth is intended to further increase its cash position and further strengthen its balance sheet,” the company said in a regulatory filing.

This is in line with DoubleDragon’s goal to become a Tier-1 mature company this year

Its latest bond sale comes on the heels of a P10-billion, six-year bond offering in November last year with a coupon rate of 8 percent. 

Philippine Rating Services Corporation (PhilRatings) has assigned a PRS Aaa rating for the bond sale. 

The property firm expects total equity to exceed P100 billion for the first time this year. 

“DoubleDragon happens to be one of the very few companies that has not only positioned a diversified hard asset portfolio spread out across the Philippines, but it also happens to be one of the very few that has organically developed a novel asset-light concept and highly unique business model in Hotel101 (HBnB),” the company said.

This model is portable and exportable to other continents globally, it added.

DoubleDragon plans to list Hotel101 in the US through a special acquisition company. The company signed a merger deal with JVSPAC Acquisition Corp. in April last year. 

Special purpose acquisition companies are shell companies that conduct an initial public offering on the New York Stock Exchange for the purpose of using the proceeds to acquire companies that wish to list. The practice does away with the operating company doing its first public offering by merging with a listed special purpose acquisition company.

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