MANILA, Philippines — DoubleDragon Corp., the listed property developer owned by Edgar “Injap” Sia II and Tony Tan Caktiong, is eyeing as much as P10 billion from a planned bond issuance to bolster its cash reserves.
The proposed offering, the second tranche of the company’s three-year P30 billion shelf registration retail bonds program, will consist of P5 billion bond issuance, with an oversubscription option of up to P5 billion.
The proceeds of the fund raising activity will be used to further boost DoubleDragon’s financial position by increasing its cash reserves.
The planned bond issuance has been assigned an issue credit rating of PRS Aaa, with a Stable Outlook by the Philippine Rating Services Corp. (PhilRatings).
Obligations rated PRS Aaa are of the highest quality with minimal credit risk, while a stable outlook indicates that the assigned rating is likely to be maintained or to remain unchanged in the next 12 months.
PhilRatings said that the assigned rating and the corresponding outlook considered DoubleDragon’s clearly defined and well-executed growth strategy as well as its experienced management and its ability to form solid alliances with industry-recognized partners.
Also taken into account is DoubleDragon’s conservative financial position considering the capital-intensive nature of the company’s businesses and expectations of improved operating cash flow, backed by increasing rental income.
“DoubleDragon has diversified and expanded its domestic and international footprint in over 14 years of operations. The company’s investment property portfolio as of end-September 2024 stood at over 1.3 million square meters including office buildings in Metro Manila, provincial community malls as well as hotels and warehouse complexes nationwide,” PhilRatings said.
“With the projected earnings growth and increased level of cash reserves, the company will be less reliant on debt and will maintain adequate liquidity going forward,” it said.
Last November, DoubleDragon ended the offer period of its P10-billion retail bond offering two days ahead of schedule after surpassing the available allocation due to high volume of orders.
The bond offering was the first tranche of the company’s multi-year P30-billion shelf registration retail bonds program.