The Philippines’ International Container Terminal Services Inc (ICTSI) said its Royal Capital BV unit raised $200 million in a sale of subordinated perpetual securities, which an issue manager said was Asia’s first such hybrid offer.
The offer, which was oversubscribed, was priced at a yield of 8.375 percent for the first 10 years.
The was a call option in the 5th and 10th year, and every semi-annual distribution date after that. The interest rate is subject to reset and step-up after the 10th year, ICTSI said in a disclosure to the stock exchange.
ICTSI, the country’s largest port operator which also has operations overseas, guaranteed the issue and said proceeds would be used for the development of greenfield projects, potential acquisitions, and general corporate purposes.
“The highlight of the deal is it’s the first unrated perpetual transaction in Asia,” said Wick Veloso, head of capital markets at the Philippine unit of bookrunner HSBC.
Citigroup was co-arranger of the deal.
Demand exceeded $800 million following roadshows in Hong Kong, Singapore, London and Zurich, with 73 percent of the issue taken up by Asian investors and the rest by European investors, IFR reported. (Reuters)