DoubleDragon launches P3.5-B bond offering to fund expansion

DoubleDragon Corporation is preparing to raise fresh capital through the issuance of its Fixed-Rate Bonds Series G and H, with a combined offer size of P3.5 billion and an option for oversubscription. The bonds, which will be listed on the Philippine Dealing and Exchange Corp. on 19 September, carry a fixed gross interest rate of 7.7 percent, equivalent to a net yield of 5.96 percent after taxes and fees.

The Series G bonds will mature in 3.5 years, or on 19 March 2029, while the Series H bonds will run for 5.5 years until 19 March 2031. Both will pay interest quarterly and may be redeemed earlier at the company’s option. The public offer period runs from 2 to 12 September, with settlement dates scheduled on 9 and 10 September.

The offering is part of DoubleDragon’s multi-year P30-billion retail bond program aimed at strengthening its balance sheet and supporting its expansion projects. Proceeds from the latest tranche are expected to finance property developments under its recurring revenue portfolio, as well as fuel the continued global rollout of its Hotel101 brand and the expansion of its industrial leasing arm, CentralHub Industrial Centers.

Despite the relatively high yield compared to prevailing government securities, the issue carries little credit risk. DoubleDragon recently secured a PRS Aaa rating from Philippine Rating Services Corp., signifying the highest level of creditworthiness.

The higher coupon reflects competitive pricing in an environment where investors are looking for opportunities to lock in attractive returns, while also compensating for longer tenors and the need to stand out in a crowded market of capital-raising activities.

The company’s strong financial footing provides the foundation for the offering. DoubleDragon’s net income surged to P2.05 billion in the first quarter of 2025, a 245-percent jump from a year ago, while consolidated revenues more than doubled to P4.45 billion. Much of the growth was driven by stronger sales of Hotel101 units, which have gained traction both in the domestic market and overseas.

Its balance sheet has also remained resilient, with total equity now exceeding P100 billion and a net debt-to-equity ratio of just 0.76 times – among the healthiest in the local property sector. DoubleDragon’s completed portfolio of recurring revenue assets has reached over 1.4 million square meters in gross floor area, spanning retail, office, industrial, and hospitality properties.

The global expansion of Hotel101, including its entry into Japan, the United States, and Europe, is seen to provide additional stability to cash flows. The brand recently achieved a milestone with its Nasdaq listing through Hotel101 Global, further broadening DoubleDragon’s access to international capital markets.

The timing of the issuance also works in the company’s favor. With only one peso retail bond expected to be launched in the market during the period, DoubleDragon stands to capture significant attention from investors seeking secure and high-yielding instruments.

By raising fresh funds through Series G and H, DoubleDragon is positioning itself not only to reinforce its domestic projects but also to accelerate its push into global markets. For investors, the bonds offer an unusual combination: high returns backed by a company with a proven record of growth, a solid balance sheet, and an expanding international footprint.