LISTED DoubleDragon Corp. (DD) is preparing to launch a bond offer of as much as P10.9 billion in September because the Bangko Sentral ng Pilipinas (BSP) is ready to make a decision on policy rates later this week.
“This proposed DD double-seven retail bond issuance is anticipated to be boosted by the expected upcoming BSP rate of interest reduction this week,” DD said in a regulatory filing on Tuesday.
DD said it expects the bond issuance to “exhibit a positive (and) robust capital market within the Philippines.”
The bonds will carry a 7.7% rate of interest with maturities of three.5 years and 5.5 years.
“The double-seven 7.7% rate of interest signifies number 7 twice, as 7 is a number believed by many as lucky and the number forms much like the form of an auspicious dragon,” DD said.
A BusinessWorld poll conducted last week involving 20 analysts showed that the Monetary Board is anticipated to chop the goal reverse repurchase rate by 25 basis points at its policy meeting on Aug. 28.
If implemented, this is able to bring the benchmark rate all the way down to 5% from the present 5.25%.
The BSP is anticipated to further reduce rates of interest after Philippine inflation fell to a near six-year low of 0.9% in July.
The planned DD bond issuance will probably be drawn from the corporate’s bond program, which was approved by the Securities and Exchange Commission through shelf registration in 2024.
It secured the best PRS Aaa credit standing from the Philippine Rating Services Corp.
“This retail bond tranche was decided to be issued earlier to capitalize on the September 2025 issuance window, during which the DD double-seven peso retail bond will probably be the one bond offering out there,” DD said.
DD shares rose by 0.82% or eight centavos to P9.80 apiece on Tuesday. — Revin Mikhael D. Ochave