Singapore Power lights up bond markets

Asia''s largest corporate bond deal of 2003 finds a willing audience.

An acquisition financing and re-capitalization for Singapore Power was completed via an S$3.8 billion $2.2 billion four tranche bond issue last night Thursday. The huge rarity value of the transaction by wholly-owned subsidiary SP PowerAssets SPPA meant the Aa1AA rated credit did not have to cede an inch on price in to achieve its desired size.

Instead, lead managers DBS and Morgan Stanley were able to use rapidly building momentum as a lever to revise indicative pricing tighter and eventually price through the levels of higher rated international comparables.

A $600 million five-year tranche was priced at 99.955% on a coupon of 3.8% to yield 3.81%. This equates...

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