Property developer DoubleDragon Corporation, a partnership between tycoons Tony Tan Caktiong and Edgar Sia II, is planning to raise another P10 billion from the issuance of retail bonds.
Philippine Rating Services Corporation (PhilRatings) said it has assigned the highest Issue Credit Rating of PRS Aaa, with a stable outlook, to DoubleDragon’s proposed P5 billion bond issuance, with an oversubscription option of up to P5 billion.
The proposed bond issue represents the second tranche of the company’s three-year P30 billion shelf registration retail bonds program.
Last November 2024, DoubleDragon also raised P10 billion from the first tranche of its retail bonds after an oversubscribed public offering. The bonds have a tenor of 5.5 years and carry an interest rate of 8.008 percent.
Proceeds of the second tranche issuance are intended to further boost DoubleDragon’s financial position by increasing its cash reserves.
Obligations rated PRS Aaa are of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment to the obligation is extremely strong.
A stable outlook, on the other hand, indicates that the assigned rating is likely to be maintained or to remain unchanged in the next 12 months.
PhilRatings said the assigned rating and the corresponding outlook considered DoubleDragon’s clearly defined and well-executed growth strategy, its experienced management, and its ability to form solid alliances with industry-recognized partners.
The rating also factored in the firm’s conservative financial position considering the capital-intensive nature of the company’s businesses as well as expectations of improved operating cash flow, backed by increasing rental income.
DoubleDragon’s investment property portfolio as of end-September 2024 stood at over 1.3 million square meters (sqm) including office buildings in Metro Manila, provincial community malls, as well as hotels and warehouse complexes nationwide.
The firm aims to increase its property portfolio to 2.4 million sqm of gross floor area (GFA) by 2030, spread across its four core business segments: 30 percent in retail, 15 percent in office, 20 percent in hospitality, and 35 percent in industrial leasing.
The company is focusing on growing its hospitality and industrial leasing segments in order to achieve these targets.
DoubleDragon continues to build up its industrial leasing portfolio under the CentralHub brand, while also preparing for the planned initial public offering of the Philippines’ first Industrial REIT which is expected to happen in the second half of 2025.