Quantcast
Latest Stories

JG Summit raises $750M via overseas bond issue

By

Gokongwei-led conglomerate JG Summit Holdings has returned to the overseas bond market with a landmark $750-million offshore bond issue, the largest overseas corporate bond deal out of the Philippines.

Through wholly owned JGSH Philippines Ltd., the conglomerate issued 10-year senior debt at an interest of 4.375 percent a year, the lowest yield ever for a 10-year US dollar-denominated bond from corporate Philippines.

This bond deal marked the JG Summit group’s first offshore foray in seven years.

The bond issue was upsized from original offer size of $500 million due to strong demand.

The order book reached an unprecedented $6.6 billion, said Wick Veloso, chief executive officer of HSBC Philippines, which is one of the bond arrangers.

“JG Summit is a credit that the market wants an exposure to and this is best shown by the overwhelming demand and tight pricing,” Veloso said in an interview.

HSBC, along with Citigroup Global Markets Ltd. and Credit Suisse Securities (Europe) Ltd., acted as joint bookrunners and joint lead managers for this issue.

The bond deal was completed following road shows held simultaneously in Hong Kong and Singapore on Tuesday.

Some 222 high-quality institutional investors participated in this bond deal, 91 percent of which came from Asia, 8 percent from Europe and 1 percent from US offshore accounts.

“We congratulate JG Summit on this highly successful landmark transaction. This represents the tightest pricing ever for a 10-year issue from a Philippine corporate and the lowest coupon achieved by JG Summit to date since their previous international bond offering in 2006,” Veloso said.

JG Summit is one of the largest and most diversified conglomerates in the Philippines with a market capitalization of $6.4 billion. It has business operations in food and beverages under listed Universal Robina Corporation, property development under listed Robinsons Land Corporation, air transportation under listed Cebu Pacific, banking and financial services and petrochemicals. JG Summit also holds core investments in telecommunications and real estate through its stakes in telecom giant Philippine Long Distance Telephone Company and Singapore’s United Industrial Corp. Ltd, respectively.

Originally posted at 07:43 am | Thursday, January 17, 2012


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Bonds and t-bills , Business , corporate debt deal , debt deal , JG Summit , overseas bond market



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • Nebraska toddler gets stuck inside claw machine
  • Philippine eagle rescued by Army turned over to DENR
  • Gunmen attack Iraq military base, kill 10 soldiers
  • South Korea president shouted down by distraught parents
  • Classmates celebrating 60th birthday among missing in ferry sinking
  • Sports

  • Nadal passes clay landmark with 300th victory
  • Wawrinka waltzes through with Monte Carlo walkover
  • Power Pinays smash India in Asian Women’s Club volleyball opener
  • PH youth boxers off to stumbling start in AIBA World tilt
  • Durant has 42, Thunder beat Pistons 112-111
  • Lifestyle

  • Pro visual artists, lensmen to judge Pagcor’s photo contest
  • ‘Labahita a la bacalao’
  • This is not just a farm
  • Clams and garlic, softshell crab risotto–not your usual seafood fare for Holy Week
  • Moist, extra-tender blueberry muffins
  • Entertainment

  • Jones, Godard, Cronenberg in competition at Cannes
  • Will Arnett files for divorce from Amy Poehler
  • American rapper cuts own penis, jumps off building
  • Jay Z to bring Made in America music fest to LA
  • Why Lucky has not bought an engagement ring for Angel
  • Business

  • Total says makes ‘very promising’ oil find off Ivory Coast
  • ‘Chinese Twitter’ firm Weibo to go public in US
  • World stocks subdued, Nikkei flat on profit taking
  • Asia stocks fail to match Wall Street gains
  • Fired Yahoo exec gets $58M for 15 months of work
  • Technology

  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Filipinos #PrayForSouthKorea
  • Taylor Swift tries video blogging, crashes into fan’s bridal shower
  • DOF: Tagaytay, QC best at handling funds
  • Smart phone apps and sites perfect for the Holy Week
  • Opinion

  • Editorial cartoon, April 17, 2014
  • A humbler Church
  • Deepest darkness
  • ‘Agnihotra’ for Earth’s health
  • It’s the Holy Week, time to think of others
  • Global Nation

  • Malaysia quarantines 64 villagers over MERS virus
  • DFA: 2 Filipinos survive Korean ferry disaster
  • PH asks airline passengers to check for MERS
  • Syria most dangerous country for journalists, PH 3rd—watchdog
  • Japan says visa-free entry still a plan
  • Marketplace