DoubleDragon retail bond offer ends oversubscribed
DOUBLEDRAGON CORP. (DD) said its P10.9-billion retail bond offering closed on Sept. 15 oversubscribed, after triggering the oversubscription option on the second day of the offer period.
The option was triggered after subscriptions exceeded 80% of the total base and maximum oversubscription amount as of Sept. 12, the company said in a statement on Monday.
The offer period started on Sept. 11 and closed on Sept. 15 at 5 p.m., with listing on the Philippine Dealing & Exchange Corp. set for Sept. 19.
The bonds carry a fixed annual interest rate of 7.7%, payable quarterly, with tenors of 3.5 and 5.5 years. The minimum placement is P50,000.
Philippine Rating Services Corp. (PhilRatings) gave the issuance its highest grade of PRS Aaa, reflecting a “very strong” capacity to meet financial commitments relative to other local firms.
The issuance is part of DoubleDragon’s bond program cleared by the Securities and Exchange Commission under a 2024 shelf registration.
DoubleDragon said the fundraising aims to improve its cash position and strengthen its balance sheet, aligned with its goal of becoming a Tier-1 mature company by 2025.
“The Double-Seven 7.7% interest rate signifies number 7 twice, as 7 is a number believed by many as lucky and the number forms similar to the shape of an auspicious Dragon,” the company said in a Sept. 11 filing.
DoubleDragon’s equity has surpassed P100 billion, placing it among a handful of local companies with 12-digit equity.
Rizal Commercial Banking Corp. and Unicapital, Inc. underwrote the issuance, while Land Bank of the Philippines served as selling agent.
“The company continues to attract strong investor appetite for its top-grade bonds given the high interest rate as well as the global expansion of its Hotel 101 platform,” China Bank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message.
“Investors have also been locking in high yields as benchmark rates move lower on the back of the Bangko Sentral ng Pilipinas’ monetary policy easing cycle,” he added.
Shares in DoubleDragon climbed 1.24% or P0.12 to close at P9.80 apiece on Monday. — Alexandria Grace C. Magno
