DoubleDragon eyes P10-B retail bond issuance
DoubleDragon Corp., the property venture of tycoons Edgar Sia II and Tony Tan Caktiong, will raise up to P10 billion from the retail debt market within this first quarter of the year to beef up its expansion war chest.
In a stock exchange filing on Thursday, DoubleDragon said its offering would have a base amount of P5 billion and an oversubscription of up to P5 billion in case of high demand.
Set to be the company’s only peso retail bond offering this year, the upcoming issuance represents the second tranche of DoubleDragon’s P30-billion bond program that was approved in 2024.
The so-called “New Year Bonds Triple 7” bonds, which will mature in seven years, promise a yield of 7.77 percent for lenders.
Philippine Rating Services Corp. also assigned an issue credit rating of PRS Aaa to the issuance, entailing that DoubleDragon has a “very strong” capacity to repay its debts.
Last November, the company raised P10 billion from the first tranche of its bond program. DoubleDragon plans to issue the third tranche by 2026, it said in its disclosure.
This comes as the property developer plans to increase its cash position and bankroll its expansion pipeline, particularly in the hospitality industry through Hotel101.
Main vehicle
The homegrown condotel chain is currently DoubleDragon’s main vehicle for international expansion.
To date, Hotel101 has two overseas branches—Madrid in Spain and Niseko in Japan—under construction.
DoubleDragon subsidiary Hotel101 Global is likewise slated for a Nasdaq Stock Exchange listing, making it the first Filipino-owned company to do so.
In the first nine months of 2024, DoubleDragon’s net income inched up by 2.4 percent to P2.53 billion, buoyed by a slight increase in revenues.
The company’s top line rose by 4.46 percent to P6.42 billion.
Total equity reached P94.9 billion, drawing the company closer to its goal of exceeding the P100-billion equity mark for the entire year.
DoubleDragon also recently unveiled plans to pursue the stock market debut this year of its industrial warehouse subsidiary, CentralHub Industrial Centers Inc. It will become the country’s first industrial real estate investment trust.
