LISTED property developer DoubleDragon Corp. got the highest credit rating for a P10-billion planned bond issuance in November as the company aims to expand its investor base.
It secured the “PRS Aaa” with a stable outlook for the bond offer with a base amount of P5 billion and an oversubscription option of as much as P5 billion, it said in a stock exchange filing on Thursday.
The P10-billion bond sale is the first tranche of DoubleDragon’s P30-billion multiyear retail bond issuance. The tenor is at 5.5 years, while the interest rate is at 8%, with a P50,000 minimum denomination.
The “PRS Aaa” rating is given to debt with marginal credit risk, while a stable outlook means that the rating is likely to remain unchanged in the next 12 months.
DoubleDragon’s bond issuances for 2025 and 2026 will be priced at about 7% and 6% per annum, respectively.
“The pipeline capital-raising issuances at this stage of DoubleDragon’s growth are intended to further boost its financial position by increasing its cash position,” the company said.
Meanwhile, DoubleDragon Chairman Edgar “Injap” J. Sia II said he expects the bond sale to attract retail investors.
“Since the cycle of low interest rates has begun, this retail bond offering could be the very last time in many years at 8% per annum,” he said.
This offer would also accommodate retail investors who failed to participate in the recent DoubleDragon retail bond sale, he added.
In July, the company finished a P10-billion retail bond offer that was fully subscribed five days before schedule. It was the initial segment of DoubleDragon’s shelf-registered debt program.
DoubleDragon shares gained 0.37% or 4 centavos to close at P10.82 each. — Revin Mikhael D. Ochave
