PROPERTY developer DoubleDragon Corp. said Monday its P10-billion fixed retail bond offer had been greenlit by the Securities and Exchange Commission.
DoubleDragon Chairman Edgar “Injap” Sia II said the company was happy to tap the retail bond market again after more than five years.
In a filing, DoubleDragon said it received the order of registration and permit to sell the bonds last Friday.
The 3.5-year bonds have a coupon rate of 8.008 percent per annum with a minimum investment size of P50,000.
“We believe that the pricing of this [bond] at 8.008 percent 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 P50,000,” Sia said.
The offering has been rated PRS Aaa by the Philippine Rating Services Corp.
The offer period is up to July 10 while the listing date on the Philippine Dealing and Exchange Corp. is on July 16, 2024.
Sia urged investors to take advantage of the good coupon rate, saying that the “global high interest cycle is starting to shift to [a] downward interest rate cycle.”
He also noted that DoubleDragon’s balance sheet was “nearing the blue-chip level,” with the company’s total assets as of end-2023 up nearly 16 percent year on year to P181.24 billion.
Total equity increased 15.88 percent year on year to P94.57 billion in 2023, while its debt-to-equity ratio was said to be at a “very healthy 0.64x” as of the end of last year.
DoubleDragon also expects its balance sheet to receive a boost from the upcoming global listing of Hotel101, an asset-light and unique business said to be “portable and exportable.”
The company reported a consolidated net income of P15.93 billion for 2023, up 23 percent year on year, on consolidated revenues of P24.7 billion.
DoubleDragon shares lost 20 centavos, or 1.65 percent, to close at P11.90 apiece on Monday.
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