DoubleDragon’s Sia: 2024 last chance at 8.008% retail bonds

LISTED real estate developer DoubleDragon Corp. (DD) has set the interest rate for its upcoming 3.5-year retail bond issue at 8.008% per annum.

“Personally, I believe that 2024 could be the very last year in my entrepreneurial journey where the retail public can participate with a retail bond with a coupon rate of 8.008%, given that not only DD is approaching the blue chip level of the balance sheet, but also the The global high interest rate cycle is beginning to shift to a downward interest rate cycle,” DD Chairman Edgar “Injap” J. Sia II said in a statement on Monday.

This retail bond offering represents the first segment of DD’s government bond program, which totals P10 billion. The offering includes a principal amount of up to P3 billion, with an oversubscription option of up to P3 billion.

DD said the offering period began on June 28 and will run until July 10, with a listing on the Philippine Dealing & Exchange Corp. scheduled for July 16.

According to the final prospectus dated June 27, the company expects to generate net proceeds of more than P5 billion, assuming the oversubscription option is fully exercised.

These proceeds are intended to partially finance the redemption of DD’s P9.7 billion fixed-rate bonds issued in July 2017 and to cover overhead costs, including working capital needs.

The 3.5-year bond issue has received approval from the Philippine Rating Services Corp. (PhilRatings) has been rated “PRS Aaa” with a stable outlook. This rating indicates minimal credit risk, and the stable outlook indicates that the rating will remain unchanged over the next twelve months.

DD acquired RCBC Capital Corp., Unicapital, Inc. and Development Bank of the Philippines as joint lead underwriters and bookrunners for the issuance.

“We are pleased to be able to tap the private peso bond market again after more than five years. We believe that the pricing of this 8.008% DD retail bond offering will enable a wide range of people to benefit from the good coupon rate for a Triple A rated retail bond, and given the minimum investment size of only P50,000,” Mr. Sia said.

“Moreover, it is also believed by many that 8 is a promising or ‘swerte“(lucky) number and having two 8’s in the coupon rate could be even more beneficial,” he added.

By 2024, DD expects to cross the P100 billion equity mark for the first time.

The company also expects a strengthened balance sheet following the upcoming listing of its hotel subsidiary Hotel101 Global Pte. Ltd., on the Nasdaq Stock Exchange in the United States.

Hotel101 Global will trade on Nasdaq under the ticker symbol “HBNB” following the signing of a binding definitive merger agreement with special purpose acquisition company JVSPAC Acquisition Corp.

Last year, DD saw its consolidated net profit rise 23.25% to P15.93 billion, while consolidated revenue rose 75% to P24.74 billion.

DD shares fell 1.65% or 20 centavos to close at P11.90 per share on Monday. — Revin Mikhael D. Ochave