JG Summit brings rare corporate benchmark

The conglomerate prices the Philippines first pure corporate dollar bond in two-and-a-half years.

Taking advantage of low Treasury rates, the group has raised $100 million to partially re-pay a $200 million Eurobond maturing in May this year. The four-year deal came slightly wider than expectations and offered investors a roughly 128bp pick-up to both the sovereign curve and an outstanding issue by rival conglomerate Ayala Corporation.

With the group's house bank, ING Barings, as lead manager, a $100 million Reg S offering was priced yesterday Monday at par with a coupon of 9.25% to yield 502bp over Treasuries. There was no other syndicate.

The nearest comparable benchmark is a 9% November 2005 bond by the Bangko Sentral ng Pilipinas, which was yielding 7.98% bid at the time of...

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