By Francis Allan L. Angelo
DoubleDragon Corporation has officially received the Order of Registration and Permit to Sell from the Securities and Exchange Commission (SEC) for its 3.5-year retail bond offering, priced at 8.008% per annum.
This marks the company’s return to the peso retail bond market after over five years.
The retail bond, which carries an “AAA” rating from the Philippine Rating Services Corporation (PhilRatings), signifies the highest credit quality.
In a press statement, Edgar “Injap” Sia, Chairman of DoubleDragon, expressed optimism about the bond’s reception, highlighting the attractive coupon rate and the belief in the auspicious nature of the number eight.
“We believe that the pricing of this DD Retail Bond Offering at 8.008% will enable a wide range of people to avail of the good coupon rate for a Triple A rated retail bond and given the minimum investment size of only 50,000 pesos,” Sia said.
Sia further commented on the timing of the offering, suggesting that 2024 might be the last year the public can participate in a retail bond with such a rate, given DoubleDragon’s near-bluechip status and shifting global interest rate cycles.
DoubleDragon’s total equity is projected to exceed PHP 100 billion in 2024, marking a significant milestone.
The company boasts a diversified portfolio of hard assets across Luzon, Visayas, Mindanao, and overseas, complemented by the innovative, asset-light Hotel101 model, which is positioned for international expansion.
The upcoming global listing of Hotel101 in the US is expected to bolster the company’s balance sheet further.
The offering, managed by RCBC Capital Corporation, Unicapital, Inc., and the Development Bank of the Philippines (DBP), with EastWest Bank as a selling agent, is available until July 10, 2024.
The bonds are set to list on the Philippine Dealing & Exchange Corp. (PDEx) on July 16, 2024, with a minimum investment of PHP 50,000.
DoubleDragon’s financial health remains robust, with a 23.25% increase in consolidated net income to PHP 15.93 billion for the year ending December 31, 2023.
Consolidated revenues reached PHP 24.74 billion, while total assets and equity grew by 15.59% and 15.88%, respectively.
Co-founded by Filipino entrepreneurs Edgar “Injap” Sia II and Tony Tan Caktiong, DoubleDragon continues to strengthen its position as a leading property developer in the Philippines, leveraging its strategic investments and innovative business models to drive growth and stability.
(For complete details, please see attached filings and
https://www.doubledragon.com.ph/ir/2024-fixed-rate-bond-offering)
