SMC Power perp walks into the bond market

The Philippines' largest power producer jumps into the perpetual bond market one day after ICTSI but ends up paying a much higher new issue premium.

SMC Global Power, the Philippines’ largest power producer, jumped into the Asian bond markets on Wednesday with its first perpetual deal since 2013.

The transaction came one day after a similar offering from the Philippines International Container Terminal Services ICTSI, which initially appeared to have gone well after attracting a respectable order book of $1.8 billion for an upsized $450 million offering.

However, instead of providing a good springboard for SMC Power, ICTSI’s deal appears to have sucked most of the available demand out of the market instead.

As a result, SMC Power ended up having to settle for a $300 million...

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