Napocor fails to generate demand

Asia''s unluckiest credit sees bond plan fail as investors demand a huge premium to the sovereign curve.

The Philippines National Power Corporation Napocor pulled back from pricing a $500 million 10-year bond yesterday Thursday after failing to build a full order book and unable to stomach pricing at up to a 150bp premium to the sovereign curve.

As National Treasurer Sergio Edeza wryly reflects, Even when we first went out with pricing guidance at 75bp over sovereign paper, the premium was already way too high. And we ended up with a situation where most investors were asking for 125bp to 150bp over. It just made no sense at all. We're better off doing a transaction on behalf of Napocor ourselves.

Edeza was the lead government official on roadshows...

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222