Globe looks to an investment grade rating

Just over a week ago, Globe Telecom set an important new benchmark for Philippines' corporate paper, with the pricing of its first international bond deal in nearly three years. With Salomon Smith Barney as lead manager, the BB/Ba3 rated group raised $200 million from a 10 non call five offering with pricing at par on a coupon of 9.75% to yield 442bp over Treasuries. Terms were aggressive and demand was strong, with Philippines investors alone enough to cover the book before global roadshows even began. It all showed just how far the group has come from its debut foray in the international debt markets back in July 1999 when Salomon again led a $220 million bond issue for the group, then rated only B+/B1 and priced at 709bp over Treasuries to yield 13%.