DOUBLEDRAGON Corp. said Wednesday that its board of directors had approved a P30-billion multi-year shelf registration for retail bonds to beef up its war chest for asset acquisitions.
The firm told the stock exchange that the first issuance, scheduled for this quarter, would be named "Dragon Year-End Bonds" to coincide with the closing of the Year of the Dragon.
DoubleDragon said that most of its "capital-raising issuances were all deployed in building up its hard asset recurring revenue portfolio from zero to now 1.3 million square meters of completed GFA (gross floor area)."
Its string of investment properties, "strategically planted in prime locations spread out in Luzon, Visayas, Mindanao, and overseas, serves as its strong underlying solid foundation," it added.
An upcoming Hotel101 Global listing in the US is also expected to further strengthen DoubleDragon's balance sheet.
"The pipeline capital-raising issuances at this stage of DoubleDragon's growth are intended to further boost its financial position through further increasing its cash position," the company said.
The P5-billion initial bond offering will carry an expected rate of 8 percent per annum and a tenor of five to seven years.
The company expects to issue its retail bond offerings in at least three tranches at five to seven years' tenor, with rates expected at the 8 percent per year area for the 2024 issuance, 7 percent for the 2025 tranche, and 6 percent for the 2026 batch.
Following these, requirements for additional substantial capital expenditure will no longer be needed in the near term, DoubleDragon said, adding that it aims to become a tier 1 company by 2025.
DoubleDragon earlier listed two tranches of retail bonds worth a total of P10 billion with a coupon rate of 8.0080 percent. The first tranche of P6 billion due 2028 was listed on the Philippine Dealing and Exchange Corp. (PDEx) last July 16. The balance of P4 billion due 2029 was listed on September 20.
Chaired and co-chaired by two Filipino entrepreneurs — Mang Inasal founder Edgar "Injap" Sia II and Jollibee founder Tony Tan Caktiong — the company claims it is set to exceed P100 billion in total equity this year.
DoubleDragon shares fell by 32 centavos, or 3.07 percent, to P10.12 apiece on Wednesday, outpacing the benchmark Philippine Stock Exchange index's 1.5-percent plunge.
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