SIA AND CAKTIONG-LED DoubleDragon Corp. (DD) said it plans to issue up to P10 billion worth of retail bonds in the first quarter to bolster the company’s cash 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 be the company’s sole peso retail bond offering for the year. It will be priced at 7.77% per annum and will have a seven-year tenor.
The planned P10-billion bond issuance will 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 year.
DD said the proposed issuance received the highest 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 means that the rating is likely to be retained or remain unchanged in the next twelve months.
“The pipeline capital-raising issuances at this stage of DD’s growth are intended to further increase its cash position and further strengthen its balance sheet — all in line with DD’s goal to become a Tier-1 mature company by this year, 2025,” DD said.
“The DD New Year Triple-7 retail bond offering carries the number 7 in triplet, as in 777, which is believed by many to signify the multiplication of good luck,” it added.
In addition to 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 boost the company’s balance sheet.
DD previously said the planned initial public offering of industrial warehouse unit CentralHub could push through by the latter half of 2025 amid easing interest rates.
In November, DD said it ended the offer period for its P10-billion fixed-rate peso retail bond issuance two days earlier than planned due to high investor demand.
It was priced at 8% per annum and was the first tranche of the company’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