DoubleDragon banks on investor demand as offer period for P10-B retail issuance starts

LISTED DoubleDragon Corp. (DD) has started the offer period for its P10-billion retail bond issuance, running until Nov. 20, banking on high investor demand to support its fundraising plans.

The bond issuance is priced at 8% per annum and has a tenor of 5.5 years, DD said in a statement to the stock exchange on Monday.

The offer has a base amount of P5 billion and an oversubscription option of up to P5 billion.

The issuance will be listed on the Philippine Dealing & Exchange Corp. on Nov. 27.

“We believe that the pricing of this DD retail bond offering at 8% 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 pesos. On top of that, number 8 is also believed by many to be auspicious or ‘buenas,’ hence otso-buenas,” DoubleDragon Chairman Edgar “Injap” J. Sia II said.

The P10-billion bond offer is the first tranche of the property developer’s P30-billion multi-year retail bond issuance.

It secured the highest “PRS Aaa” rating with a stable outlook from the Philippine Rating Services Corp., which is given to issuances with marginal credit risk and likely to remain unchanged in the next twelve months.

DD’s planned bond issuances for 2025 and 2026 are expected to be priced at around 7% per annum and 6% per annum, respectively.

“We are glad to tap the peso retail bond market again to capture an even wider stakeholder base into DD’s ecosystem,” Mr. Sia said.

“I personally believe that 2024 could be the very last year in my entrepreneurial journey that the retail public can participate with a retail bond priced at 8% coupon rate given that DD is not only nearing the blue chip level of balance sheet but also because the global high interest cycle has already started to shift to a downward interest rate cycle,” he added.

The issuance recently secured approval from the Securities and Exchange Commission.

DD tapped Land Bank of the Philippines, RCBC Capital Corp. and Unicapital, Inc. as the joint issue managers, joint lead underwriters, and bookrunners for the issuance.

On Monday, DD shares rose by 0.4% or four centavos to P9.99 per share. — Revin Mikhael D. Ochave