DoubleDragon readies P10 billion bond sale

DoubleDragon Corp. announced it is pricing its 3.5-year, P10 billion bonds at 8.008 percent, which provides a premium versus the secondary market trading rates, according to a report by BusinessMirror.

The three-year and the four-year papers were both trading at 6.3 percent at the secondary market. 

The bond sale runs up to July 10, with the bond set for listing at the Philippine Dealing and Exchange Corp. by July 16.

“We are glad to tap the peso retail bond market again after over five years. We believe that the pricing of this retail bond offering at 8.008 percent 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. On top of that, 8 is also believed by many to be an auspicious or ‘swerte’ [lucky] number and having two 8’s in the coupon rate could be even more auspicious,” Edgar J. Sia II, the company’s chairman, said.

The company said through a statement the offer may be the last time retail investors could participate in the company’s bond sale with such a rate as it approaches the blue chip status. 

“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 8.008 percent coupon rate given that not only that DoubleDragon is nearing the blue chip level of balance sheet but also the global high interest cycle is starting to shift to downward interest rate cycle,” Sia said.

He added that DoubleDragon’s equity is set this year to exceed P100 billion for the first time, positioning itself to become one of the few companies in the Philippines with total equity at 12-digit levels.

DoubleDragon tapped RCBC Capital Corp., Unicapital, Inc. and Development Bank of the Philippines as joint issue managers, joint lead underwriters and bookrunners, with EastWest Bank joining the group as a selling agent.

DoubleDragon said that the listing of its Hotel101 venture in the US will further strengthen its balance sheet. Officials expect the company’s “novel asset-light” concept and “highly unique” business model in Hotel101 would eventually become one of the major US-dollar inflow generator to the Philippine economy. 

DoubleDragon earlier said Hotel101 will become the first ever Filipino company whose majority-owned subsidiary will list via SPAC (special purpose acquisition company) in the US Nasdaq Stock Exchange, and seen to become a major brand, concept and business model export of the Philippines. 

“Hotel101 (HBNB) will have an equity value of $2.3 billion (P130 billion pesos) following completion of the merger transaction, which is expected to close during the second half of 2024 subject to regulatory and shareholder approvals and other customary closing conditions,” a statement by the company read.

Outside of the Philippines, Hotel101 has broken ground in Madrid, Spain to construct a 680-room property located in the Valdebebas area beside the Ifema Convention Complex, the Real Madrid Complex and the upcoming new F1 Grand Prix Track. Another 482-room property, Hotel101-Niseko, is under construction in Hokkaido, Japan while the company has secured a site in Los Angeles, California, for the first Hotel101 in the US.