DoubleDragon prepares P30-billion bond issuance

LISTED property developer DoubleDragon Corp. (DD) will establish a P30-billion multi-year shelf registration for retail bond issuance to boost its financial position.

DD’s board approved the offer on Oct. 8, intending to issue it in three or more tranches in 2024, 2025, and 2026 with a tenor of five to seven years, the company told the stock exchange on Wednesday.

“The pipeline capital-raising issuances at this stage of DD’s growth are intended to further boost its financial position by increasing its cash position,” the property developer said.

DD will offer an initial P5-billion retail bond issuance in the fourth quarter at a price of 8% per annum (p.a.).

The planned bond issuances for 2025 and 2026 will be priced at around 7% p.a. and 6% p.a., respectively.

DD said the initial P5-billion retail bond offering for the fourth quarter “could become one of the last, if not the last and only, long-term retail bond offerings available in the Philippines for this year at an expected attractive rate of 8% p.a.”

“For the past ten years since DD listed on the Philippine Stock Exchange in April 2014, the majority of the series of capital-raising issuances were deployed in building up its hard asset recurring revenue portfolio from zero to now 1.3 million square meters of completed gross floor area,” DD said.

“From 2025 onwards, these portfolios built in the past ten years will already be fully completed and built up and are expected to start generating optimal revenues year on year, while requirements for further substantial capital expenditure will no longer be needed in the near term – all in line with DD’s goal to become a Tier-1 mature company by next year,” it added.

In July, DD concluded a P10-billion retail bond offering that achieved full subscription five days ahead of schedule. It was the initial segment of DD’s shelf-registered debt securities program.

For the first half, DD grew its attributable net income by 24% to P1 billion from P805.52 million in 2023.

Revenues also rose by 11.7% to P4.4 billion as rental revenue increased by 1% to P1.97 billion due to a combination of rental escalation and new tenants.

On Wednesday, DD shares dropped 3.07% or 32 centavos to PHP 10.12 per share. — Revin Mikhael Ochave