DoubleDragon Corp., a listed property developer, said Thursday it set to launch in November its Otso Buenas retail bonds, with an initial tranche of P5 billion and an oversubscription option of P5 billion. The retail bond will have a term of 5.5 years and an expected interest rate of 8 percent.
Philippine Rating Services Corp., a local credit agency, rated DoubleDragon’s planned retail bonds as PRS Aaa, with a stable outlook.
“This offering also paves the way to accommodate the overflow of retail investors who were not able to participate in the recent DD Otso-Otco retail bonds. The wider the stakeholders of DoubleDragon, the more meaningful impact we create to our society,” said DoubleDragon Chairman Edgar Injap Sia II.
The new capital-raising exercise, which would strengthen DoubleDragon’s balance sheet, follows the P10 billion Otso-Otso retail bonds launched in the third quarter. The company is hopeful the strong demand from local investors in the previous retail bond offer will be replicated in the new bond offer.
DoubleDragon expects total equity will exceed P100 billion, placing it among a select group of Philippine companies to reach this milestone. The company has developed the Hotel101 concept, which is positioned for global expansion and aims to generate substantial foreign currency inflows for the Philippine economy.
Initial overseas projects under Hotel101 are expected to bring in USD471 million in foreign revenue. The long-term goal includes establishing 50,000 operating hotel rooms in the Philippines as part of a broader target of one million rooms worldwide by 2050.
