DoubleDragon Corp. started on Monday a 10-day public offer of its 5.5-year retail bond offer that aims to raise P10 billion to fund its expansion plans. The company set a coupon of 8 percent on the retail bond.
The public offer will end on 20 November while the retail bonds are tentatively scheduled for listing on 27 November on the Philippine Dealing Exchange.
The DoubleDragon bonds are considered highly secure, the company being one of the few in the Philippines to hold a PRS Aaa rating from PhilRatings. The issuance is intended to further strengthen DoubleDragon’s financial position by increasing its cash reserves as it prepares for future growth.
In the past decade since its listing in 2014, DoubleDragon has focused on capital-raising to build its portfolio of income-generating assets. With over 1.3 million square meters of completed gross floor area from its real estate developments, the company is now transitioning to the revenue generation phase from these assets.
DoubleDragon expects its portfolio to be fully completed by 2025, reducing the need for additional capital expenditure and paving the way for steady revenue streams. It also expects to exceed P100 billion in total equity for the first time in 2024, marking a significant milestone for the company. In addition to its extensive domestic real estate portfolio, DoubleDragon has created an innovative, asset-light business model through Hotel101 (HBnB), a global venture that aims to expand its presence internationally, generating significant foreign exchange for the Philippine economy.
As of June 30, 2024, DoubleDragon’s total assets have reached P191.29 billion, while its total equity grew to P95.15 billion. The company’s healthy financial structure is further evidenced by its low net debt-to-equity ratio of 0.69 times, far below its debt ceiling, which continues to provide a strong foundation for its growth and operations. The company’s real estate portfolio spans across Luzon, Visayas, and Mindanao, and is poised to mature by 2025, with an expected asset value of over P250 billion by 2030.
The joint issue managers, joint lead underwriters, bookrunners, and selling agents for the bond offering are RCBC Capital, Landbank, and Unicapital, with EastWest Bank acting as a selling agent.
“We are excited to tap the Peso Retail Bond market once again to engage an even wider range of stakeholders in DoubleDragon’s ecosystem. We believe that pricing the DD retail bond offering at 8 percent will allow a broad segment of the population to benefit from an attractive coupon rate for a Triple-A rated retail bond, especially with the minimum investment size set at only ₱50,000. Additionally, the number 8 is considered auspicious or ‘buenas’ by many, hence the name Otso-Buenas,” said DoubleDragon chairman Edgar “Injap” Sia.
