Wednesday, 20 May 2009

Philippines' PSALM bond offer oversubscribed

Agence France-Presse
http://business.inquirer.net/money/topstories/view/20090520-206109/PSALMs-bond-offer-oversubscribed

MANILA, Philippines--A billion-dollar bond offering by Power Sector Assets and Liabilities Management Corp. (PSALM) was nearly six times subscribed, the government and reports said Wednesday.

The offering attracted some $5.7 billion in demand, Dow Jones Newswires said.

About 55 percent of the bonds were allocated to Asia, while 17.5 percent went to Europe. Twenty-seven percent were booked in the United States, the agency said.

It said 208 foreign investors participated in the transaction, it said.

The bond was the first from a power company out of Asia this year.

"The strong response to our debut offering signifies the confidence of investors globally in PSALM and (in) our ability to deliver on our privatization and liability management mandate," PSALM president and chief executive Jose Ibazeta said in a statement.

Finance Secretary Margarito Teves said the enthusiastic response to the bond offering reflected investor confidence "in the overall economic prospects of the country.

Proceeds from the bond, which are unconditionally guaranteed by Manila, will go to funding requirements as well as servicing of debts owed to independent power producers.

PSALM was established in 2001 to run and manage the assets and liabilities of the debt-ridden National Power Corp.

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