SIA AND CAKTIONG-LED DoubleDragon Corp. (DD) said it plans to issue as much as P10 billion price of retail bonds in the primary quarter to bolster the corporate’s money position and balance sheet.
The issuance will comprise a P5-billion base offer and a P5-billion oversubscription option, DoubleDragon said in a regulatory filing on Thursday.
DoubleDragon said the issuance will likely be the corporate’s sole peso retail bond offering for the 12 months. It would be priced at 7.77% each year and can have a seven-year tenor.
The planned P10-billion bond issuance will likely be the second tranche of DoubleDragon’s P30-billion shelf-registered retail bonds program, with the third and final tranche planned for issuance by next 12 months.
DD said the proposed issuance received the best PRS Aaa rating with a stable outlook from the Philippine Rating Services Corp.
The PRS Aaa rating is given to issuances with marginal credit risk, while a stable outlook implies that the rating is more likely to be retained or remain unchanged in the following twelve months.
“The pipeline capital-raising issuances at this stage of DD’s growth are intended to further increase its money position and further strengthen its balance sheet — all consistent with DD’s goal to grow to be a Tier-1 mature company by this 12 months, 2025,” DD said.
“The DD Recent 12 months Triple-7 retail bond offering carries the number 7 in triplet, as in 777, which is believed by many to suggest the multiplication of excellent luck,” it added.
Along with the proposed bond issuance, DoubleDragon said the upcoming Nasdaq listing of its subsidiary Hotel101 Global Pte. Ltd. and the planned industrial real estate investment trust (REIT) public listing of its subsidiary CentralHub are expected to spice up the corporate’s balance sheet.
DD previously said the planned initial public offering of commercial warehouse unit CentralHub could push through by the latter half of 2025 amid easing rates of interest.
In November, DD said it ended the offer period for its P10-billion fixed-rate peso retail bond issuance two days sooner than planned because of high investor demand.
It was priced at 8% each year and was the primary tranche of the corporate’s P30-billion multi-year retail bond issuance.
DD shares rose by 1.21% or 12 centavos to P10 apiece on Thursday. — Revin Mikhael D. Ochave
