DoubleDragon reports strong demand for bonds

DoubleDragon Corp. has shortened the offer period for its P10-billion bond float five days ahead of schedule due to brisk demand, according to a report by BusinessMirror.

“We seek the understanding of the investing public for cutting short the DD [DoubleDragon] retail bond offer period due to oversubscription way ahead,” the company said in a statement. 

The company’s bond offer ended on July 5, earlier than original date of July 10.

RCBC Capital Corp., Unicapital Inc. and the Development Bank of the Philippines were the deal’s joint lead underwriters, joint issue managers and bookrunners. 

“But DoubleDragon is pleased to announce that another tranche of DD retail bond offering will be facilitated very soon,” the company said. “DoubleDragon has not issued any peso retail bond for over five years and DD is extremely grateful to the unwavering support of the investing public on its return to the retail bond market.

“As DD continues to expand in the Philippines and in various countries overseas, the solid support of the investing public demonstrated in this retail bond offering means a lot as we achieve dreams together.”

The company has priced its 3.5-year, P10-billion bonds at 8.008 percent, which provides a premium versus the secondary market trading rates.

The three- and the four-year papers were both trading at 6.2 percent at the secondary market. 

The bond set for listing on the Philippine Dealing and Exchange Corp. on 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’ number and having two 8’s in the coupon rate could be even more auspicious,” Edgar Sia, the company’s chairman said.