DoubleDragon readies P10.9-B bond issue as BSP rate decision approaches

LISTED DoubleDragon Corp. (DD) is preparing to launch a bond offer of up to P10.9 billion in September as the Bangko Sentral ng Pilipinas (BSP) is set to decide on policy rates later this week.

“This proposed DD double-seven retail bond issuance is expected to be boosted by the expected upcoming BSP interest rate reduction this week,” DD said in a regulatory filing on Tuesday.

DD said it expects the bond issuance to “demonstrate a positive (and) robust capital market in the Philippines.”

The bonds will carry a 7.7% interest rate with maturities of 3.5 years and 5.5 years.

“The double-seven 7.7% interest rate signifies number 7 twice, as 7 is a number believed by many as lucky and the number forms similar to the shape of an auspicious dragon,” DD said.

A BusinessWorld poll conducted last week involving 20 analysts showed that the Monetary Board is expected to cut the target reverse repurchase rate by 25 basis points at its policy meeting on Aug. 28.

If implemented, this would bring the benchmark rate down to 5% from the current 5.25%.

The BSP is expected to further reduce interest rates after Philippine inflation fell to a near six-year low of 0.9% in July.

The planned DD bond issuance will be drawn from the company’s bond program, which was approved by the Securities and Exchange Commission through shelf registration in 2024.

It secured the highest PRS Aaa credit rating from the Philippine Rating Services Corp.

“This retail bond tranche was decided to be issued earlier to capitalize on the September 2025 issuance window, during which the DD double-seven peso retail bond will be the only bond offering in the market,” DD said.

DD shares rose by 0.82% or eight centavos to P9.80 apiece on Tuesday. — Revin Mikhael D. Ochave