DOUBLEDRAGON CORP.’s offshore unit is planning a tap offering to its US dollar-denominated bonds listed at the Singapore Exchange Securities Trading Ltd. (SGX-ST) to fund its Hotel 101 project in Japan.
“DoubleDragon seeks to increase diversification of its funding sources as it prepares itself to grow its business operations inside and outside the Philippines over the long-term,” the company said in a disclosure on Monday.
Bonds issued in relation to DDPC Worldwide Pte. Ltd.’s tap offering will be consolidated with and increase the outstanding principal amount of its existing listed maiden dollar bonds listed on the SGX-ST.
In its disclosure, DoubleDragon said that its unit tapped UBS AG to be the transaction’s sole global coordinator, lead manager, and bookrunner.
UBS was mandated to conduct a series of fixed-income investor calls starting on Monday from which the company expects a tap offering on DDPC’s outstanding $130 million senior bonds due 2025.
DoubleDragon noted that many local companies had been successful in their listed bonds and securities on the SGX-ST. It added that it “recognizes the value that diverse funding sources and a broad investor base provide for its growth and expansion.”
Proceeds from the tap offering will be used for DoubleDragon’s Hotel 101-Niseko project in Hokkaido Prefecture, Japan and for general corporate purposes.
On Sept. 30, DDPC and another DoubleDragon subsidiary Hotel 101 Worldwide Pte. Ltd. paid for the acquisition of a 9,000-square-meter lot for its first international Hotel 101.
Hotel 101-Niseko will have 518 rooms from which DoubleDragon expects $137.3 million in pre-selling sales revenue.
Following the Hotel 101 concept, DoubleDragon expects to generate long-term recurring income after the project is constructed from hotel operations.
“DoubleDragon is set to jumpstart its homegrown hybrid condotel brand and concept Hotel 101 to become a global Filipino brand,” DoubleDragon Chairman Edgar J. Sia II said.
“Other countries have their homegrown hotel brand exported to other parts of the world, but the Philippines as of now do not have any … We strongly believe that Filipinos have what it takes to export their own Filipino brand all over the world too,” he added.
On Monday, shares in DoubleDragon climbed by 28 centavos or 4.67% to P6.28 apiece. — Justine Irish DP. Tabile