October 10, 2024 | 12:00am
MANILA, Philippines — DoubleDragon Corp. is returning to the bond market with a P30-billion debt program, its largest to date, intended to be issued in multiple tranches from 2024 to 2026.
The property venture of tycoons Edgar “Injap” Sia II and Tony Tan Caktiong said its board of directors approved the multi-year shelf registration retail bond program meant to further strengthen its financial position.
Given the current downtrend in interest rates, DoubleDragon expects to issue the bonds in at least three tranches with a tenor of five to seven years.
The bonds, dubbed “Dragon Year-End Bonds,” will carry annual payout rates of eight percent, seven percent and six percent for the 2024, 2025 and 2026 issuances, respectively.
“The pipeline capital-raising issuances at this stage of DoubleDragon’s growth are intended to further boost its financial position through further increasing its cash position,” it said.
For the first tranche, the company intends to offer up to P10 billion next month, which it said could become one of the last long-term offerings available in the country this year.
Luis Limlingan, Regina Capital Development Corp. managing director, told The STAR that DoubleDragon’s planned fundraising activity builds on the strong momentum generated by its P10-billion bond offer last quarter.
“Since there was significant interest in DoubleDragon’s third-quarter offering of ‘Otso-Otso’ retail bonds, this may also spark further interest in their program,” Limlingan said.
Since its public listing in April 2014, DoubleDragon has used proceeds from most of its capital-raising activities to build up its portfolio to 1.3 million square meters of completed gross floor area.
The company expects this decade-built portfolio to generate optimal revenues starting next year.
At present, DoubleDragon has a string of titled investment properties strategically located in prime areas in the country and overseas.
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