DOUBLEDRAGON Corp. plans to issue up to P10 billion in seven-year retail bonds in the first quarter, representing the second installment of a P30-billion three-year shelf registration program.
“This retail bond offering will become the second tranche from its bond program set and approved by the SEC [Securities and Exchange Commission] via shelf registration in 2024,” the property developer told the stock exchange on Thursday.
The proposed issuance, comprised of a base offer of P5 billion and an oversubscription option of P5 billion, will carry an interest rate of 7.77 percent per annum.
The third and final tranche of the bond program is planned for issuance next year.
The company said the capital raising “is intended to further increase its cash position and further strengthen its balance sheet — all in line with DoubleDragon’s goal to become a tier-1 mature company by this year.”
Philippine Rating Services Corp. earlier assigned the proposed bond issuance a credit rating of PRS Aaa with a “stable” outlook.
Last November, DoubleDragon successfully raised P10 billion from the first tranche. Due in 2030, the bonds issued carried a fixed interest rate of 8.0 percent.
Proceeds were intended to fund general corporate requirements, specifically to increase its working capital.
The company aims to further boost its balance sheet with an upcoming Hotel101 Global listing in the US and the real estate investment trust listing of CentralHub.
“The two major equity capital raises in the pipeline are expected to significantly boost DoubleDragon’s balance sheet and enhance its equity base through the expected US listing of Hotel101 Global and REIT IPO of CentralHub,” it said.
Centralhub Industrial Centers, Inc. is a joint venture between DoubleDragon and Jollibee Foods Corp.
On Thursday, DoubleDragon shares rose by 12 centavos, or 1.21 percent, to P10.00 apiece amid a 1.03-percent plunge for the benchmark Philippine Stock Exchange index.
Be the first to comment