Property developer DoubleDragon Corporation, a partnership between tycoons Tony Tan Caktiong and Edgar Sia II, has set the interest rate for its planned P10 billion the issuance of long-term Peso retail bonds at 7.77 percent per annum.
In a disclosure to the Philippine Stock Exchange, the firm said its board of directors has also set the tenor for the retail bonds at seven years. The bond offering will consist of a base offer of P5 billion and an oversubscription option of P5 billion.
“This Retail Bond Offering expected in the first quarter of 2025 will become the second tranche from its (P30 billion) Bond Program set and approved by the SEC (Securities and Exchange Commission) via shelf registration in 2024,” DoubleDragon said.
The firm added that this retail bond offering will be its only one for the entire year of 2025 since “the final third tranche is planned for issuance by next year 2026 yet.”
Philippine Rating Services Corporation (PhilRatings) has assigned its highest Issue Credit Rating of PRS Aaa to this tranche of DoubleDragon’s proposed bond issue of up to P10 billion. The ratings firm also assigned an Issuer Credit Rating of PRS Aaa to DoubleDragon Corporation.
“The pipeline capital-raising issuances at this stage of DoubleDragon’s growth is intended to further increase its cash position and further strengthen its Balance Sheet -- all in line with the DoubleDragon’s goal to become a Tier-1 mature company by this year 2025,” the firm said.
DoubleDragon said its planned Hotel101 Global listing in the US and the real estate investment trust initial public offering of CentralHub are expected to significantly boost the company’s balance sheet and enhance its equity base.
DoubleDragon’s net Debt-to-Equity ratio stands at 0.72 times and its Total Equity is on track to exceed Php100 Billion for the first time in 2024.