Alliance Global raises $500-M via bonds


Posted at Aug 13 2010 02:50 PM | Updated as of Aug 13 2010 11:13 PM

MANILA, Philippines - Alliance Global Group Inc., the holding firm of tycoon Andrew Tan, has completed its maiden bond sale worth $500 million.

Alliance Global, through its wholly owned subsidiary Alliance Global Group Cayman Islands Inc., sold 7-year international bonds.

The transaction was 9 times oversubscribed, with orders totaling $4 billion.

Alliance Global wanted to sell $400 million intially, but upsized the offer to $500 million due to strong demand.

"We are extremely pleased with the response of the investor community on our inaugural bond issue," said company chairman Andrew Tan.

The bond offer carried a coupon of rate of 6.500% and was priced at a yield of 6.625%.

Net proceeds will be used to finance Alliance Global's capital expenditures, refinance existing debts of its units, and for general corporate purposes.

"We believe the deal demonstrates investor confidence in Alliance Global's business model and operations," said its president, Kingson Sian.

UBS Investment Bank acted as sole lead manager and sole bookrunner for the bond offer.

Alliance Global is engaged in real estate development, food and beverage, quick service restaurant, and integrated tourism development.