PSA International prints $500 million bond

In an environment of low US Treasury yields and an all-round benign market backdrop, it is an ideal time for high-quality issuers to come to market. Temasek’s wholly owned shipping company, PSA International PSA, fit that description well, pricing a $500 million bond issue on Wednesday.

PSA last accessed the market back in September 2009. The new issue offered a strong scarcity value for investors and attracted $2.2 billion of orders from 180 accounts.

The Regulation-S notes were assigned an Aaa rating by Moody’s and AAA rating by Standard and Poor's. They pay a fixed rate 3.875% semi-annual coupon, and were re-offered at 99.684 to yield 3.912%. That was the equivalent...