DoubleDragon bonds get triple A rating from Philratings

The upcoming P10.9-billion bond issuance of DoubleDragon Corp. was given the highest credit rating, signaling its favorable capacity to meet its obligations.

The property venture of tycoons Edgar Sia II and Tony Tan Caktiong on Tuesday told the local stock exchange that Philippine Rating Services Corp. (PhilRatings) had assigned an issue credit rating of PRS Aaa to its proposed bond issuance scheduled next month.

This suggests that DoubleDragon has minimal credit risk and that it has a “very strong capacity” to meet its financial commitments.

The peso retail bonds will carry a 7.7-percent yield with tenors of 3.5 years and 5.5 years.

This is part of a bond program the Securities and Exchange Commission approved in 2024.

According to DoubleDragon, the retail bond offer would “further increase its cash position and further strengthen its balance sheet.”

This comes after Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. confirmed that they would likely cut interest rates twice more this year as inflation remains below target.

Monetary policy easing typically makes fixed-income securities, like bonds, more attractive due to higher yield for investors.

The BSP has so far cut rates twice this year to 5.25 percent.

DoubleDragon’s first-semester earnings surged by 53.9 percent to P1.54 billion, thanks to fresh sales from its new domestic and international projects.

Revenues likewise expanded by 58.3 percent to P6.9 billion, owing to higher real estate sales, which nearly doubled to P1.1 billion.

This came despite a dismal second quarter for DoubleDragon. During the April to June period, its net income tumbled by 60.5 percent to P288.28 million as expenses related to real estate sales more than doubled.

General and administrative expenses likewise rose by 44.1 percent during the quarter to P676.67 million.

Meanwhile, subsidiary and homegrown condotel chain Hotel101 Global Pte. Ltd. recently announced its entry into the Cambodia market.

Hotel101 expects to see P6.3 billion in sales revenue from two upcoming projects in Cambodia.