The Philippines National Power Corporation Napocor pulled back from pricing a $500 million 10-year bond yesterday Thursday after failing to build a full order book and unable to stomach pricing at up to a 150bp premium to the sovereign curve.
As National Treasurer Sergio Edeza wryly reflects, Even when we first went out with pricing guidance at 75bp over sovereign paper, the premium was already way too high. And we ended up with a situation where most investors were asking for 125bp to 150bp over. It just made no sense at all. We're better off doing a transaction on behalf of Napocor ourselves.
Edeza was the lead government official on roadshows...
