Domestic bid helps BDO price tight $300m bond

17 Oct 2010

Philippine financial institution Banco de Oro (BDO) raised $300m from a 5.5 year bond on Friday, getting strong demand from domestic investors that helped the company largely ignore fair value considerations and price the deal well inside comparable bonds.

Citi and UBS priced the issue to yield 3.95%, at the tight end of final price guidance set between 3.95% and 4% — more than 20bp inside where analysts saw fair value for the deal.

The bookrunners had initially sounded out investors with price whispers around 4.25%. But ...

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