100 million worth of dollar-denominated IOUs

Port operator International Container Terminal Services Inc.(ICTSI) wanted to sell only around $ 100 million worth of dollar-denominated IOUs but investor interest was so overwhelming the subscription was 15 times larger than the business expected.

The dollar note sale formed part of the larger $ 750 million issuance of which an initial tranche of $ 300 million, similarly oversubscribed, was conducted two weeks earlier.

ICTSI has earmarked the proceeds to fund its domestic as well as global port operations as well as help it refinance some of its maturing IOUs.

Lauro Baja, managing director at the Swiss financial services giant UBS, said the sale attracted 78 accounts the bulk or 60 percent of which were fund managers, 26 percent were banks, 10 percent were private banks and the rest were either insurance companies and other financial institutions.

The notes were sold for 101.25 with a yield of 4.46 percent.

Two weeks earlier, ICTSI sold an initial tranche worth $ 300 million which would yield investors 4.75 percent, said to be the lowest achieved ever by any Philippine issuer selling dollar-denominated 10-year notes.

These notes had a coupon rate of 4.625 percent payable twice a year.

ICTSI seeks to establish its presence more ports around Asia, Australia, India, the Middle East, Africa as well as in North and South America.

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