DoubleDragon selling bonds anew to fund expansion

Property developer DoubleDragon Corp. is raising P30 billion until 2026 via a series of retail bond offerings to support its expansion across the country and abroad.

In a disclosure on Wednesday, the joint venture of tycoons Edgar Sia II and Tony Tan Caktiong said its board of directors had approved a multiyear retail bond program covering at least three issuances.

An initial P5-billion offering is slated to be held this fourth quarter. It will carry an interest rate of 8 percent per annum and will be sold in tenors of five to seven years.

For the 2025 issuance, the bonds would yield 7 percent. The following year, the bonds would carry an interest rate of 6 percent.

“The pipeline [of] capital-raising issuances at this stage of DoubleDragon’s growth is intended to further boost its financial position through further increasing its cash position,” the listed company said.

This is the second time the company is returning to the debt market this year after having completed a P10-billion issuance in July. These particular bonds, which promised a yield of 8.008 percent per year, will mature in three and a half years.

The property developer said most of its fundraising activities in the past decade were allotted for building its recurring revenue portfolio, which has now grown to 1.3 million square meters of gross floor area.

DoubleDragon had also previously announced that its Singapore-based unit, Hotel101 Global Pte. Ltd., was set to make its stock market debut in Wall Street later in the year.

The company said its Nasdaq listing would allow it to accelerate a global expansion.

Its Madrid branch, designed to house 680 rooms, is targeted to be completed by the end of next year.

Last year, it also broke ground for a 482-room Hotel101-Niseko in Hokkaido, Japan. The project will rise on a 1.2-hectare property and will be built by Japanese contractor Iwata Chizaki, the same builder of Chitose International Airport in Sapporo.

In the first half, DoubleDragon saw its net income grow by 3.75 percent to P1.66 billion on the back of healthy hotel bookings.