Investors gobble up $300-M ICTSI notes

MANILA, Philippines - Investors gobbled up the corporate notes issued by publicly-listed port giant International Container Terminal Services Inc. (ICTSI) to raise $300 million for the company’s debt management program and capital expenditures this year.

The transaction was almost 18 times over-subscribed, with an order book totaling $5.5 billion from 180 high-quality fixed-income investors.

In terms of geographic distribution, the corporate notes were distributed 90 percent to Asia and 10 percent to Europe. By investor type, the notes were distributed 53 percent to fund managers, 23 percent to private banks, 17 percent to banks, five percent to insurance companies, and two percent to other investors.

ICTSI treasurer Rafael Consing Jr. said the oversubscription is a testament to the company’s status as the leading port operator in the country and one of the largest in the world.

“We are deeply grateful to all our partners who have continued to support ICTSI. This is a testament to ICTSI’s status as a leading and innovative Philippine issuer in the international markets,” Consing stressed.

ICTSI – a leading international operator of common user container terminals serving the global container shipping industry – successfully reopened the offshore Philippine debt capital markets having priced its $300 million offering 4.625 percent senior unsecured notes.

HSBC Philippines president and chief executive officer Wick Veloso said the bank acted as joint bookrunner and joint lead manager on the bond issue and as joint lead arranger on the establishment of the program.

“HSBC is very proud of this highly successful landmark transaction, which is a clear indication of strong international investor confidence in ICTSI and the Philippines,” Veloso said.