DoubleDragon Corporation is looking to raise as much as P30 billion over the next two years through the issuance of retail bonds as part of its plan to boost its financial position and cash reserves.
In a regulatory filing on Wednesday, Oct. 9, DoubleDragon said that the bonds will be issued in three or more tranches beginning this year until 2026.
Of the total amount, some P5 billion will be issued by the end of the year, with an 8 percent rate per annum and tenor of five to seven years.
Meanwhile, the bonds to be issued in 2025 and 2026 are expected to have a rate of seven percent p.a and six percent p.a., respectively, and likewise mature in 5 to seven years.
The P30-billion shelf registration program followed the successful launch and oversubscription of its “Otso-Otso” issuance in the third quarter of the year.
Over the past 10 years, majority of DoubleDragon’s capital-raising activities were spent on building up its hard recurring revenue portfolios. At present, the company already has a total of 1.3 million square meters (sqm) in gross floor area (GFA).
“From 2025 onwards, these portfolio built in the past 10 years will already be all fully completed and fully built up and are expected to all start generating optimal revenues year on year, while requirements for further substantial capital expenditure will no longer be needed in the near term—all in line with the DoubleDragon’s goal to become a Tier-1 mature company by next year 2025,” it said.
In July this year, the company said it was expecting to secure more than $100 million or P5.8 billion in contracted unit sales from its overseas projects as part of its long term vision to have one million rooms and expand its presence in over 100 countries.
Apart from the Philippines, DoubleDragon is also present in countries such as Japan, Spain, and the US. Over the next few years, it aims to set foot on the United Kingdom, UAE, India, China, Thailand, Malaysia, Vietnam, Indonesia, Cambodia, Bangladesh, Mexico, South Korea, Australia, Canada, Switzerland, Turkey, Italy, Germany, France and Saudi Arabia.
Its Singapore subsidiary Hotel101 Global Pte. Ltd is also expected to list on the New York Stock Exchange by the end of the year.