Psalm bonds rally on first day despite tight pricing

21 May 2009

The $1bn 10 year bond issued by Philippines’ Power Sector Assets & Liability Management Corp (Psalm) tightened strongly on its first day of trading on Wednesday, after the company attracted orders worth $5.8bn for the new issue.

Deutsche Bank, HSBC and Morgan Stanley managed the 10 year deal, which priced at 7.375%, or 412bp over Treasuries. This was at the tight-end of guidance, set on Tuesday morning between 7.375% and 7.625%.

The deal had tightened to around 385bp over Treasuries on Wednesday, its first day ...

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