Linklaters advises on bond issuances by JG Summit and ICTSI

Linklaters has advised on three bond offerings issued by Philippine corporations in the last five weeks – a clear sign of increased activity in the bond market in the Philippines this year, despite the impacts of Covid-19.

Linklaters has advised Credit Suisse (Singapore) Limited, Standard Chartered Bank and UBS AG, as joint lead managers and bookrunners, on the US$600m 4.125% notes due 2030 by JGSH Philippines, Ltd, a subsidiary of Philippine conglomerate, JG Summit Holdings. This is the largest 10-year offshore bond deal by a Philippine company since 2013.

The firm has also advised on two bond issuances by International Container Terminals Services, Inc. (ICTSI), including acting for Citigroup Global Markets Limited, Credit Suisse (Hong Kong) Limited and J.P. Morgan Securities plc, as joint lead managers and bookrunners, on the first issuance of US$400m senior notes – the first unrated corporate bond issuance from the Philippines to be issued on investment grade terms. The second issuance by ICTSI involved acting for Citigroup Global Markets Limited, The Hongkong and Shanghai Banking Corporation Limited and Standard Chartered Bank, as joint lead managers and bookrunners, on the US$300m senior perpetual securities and concurrent tender for its outstanding senior guaranteed perpetual capital securities.

The Linklaters team was led by capital markets partners Jonathan Horan and Amit Singh, with support from counsel Phill Hall and managing associate Samuel Lee.

Partner Jonathan Horan, commented:

“Philippines is an important market for us, and we are delighted to be able to support our clients in these transactions, particularly given the current challenging Covid-19 backdrop.”

Partner Amit Singh, added,

“We are heartened to see an increasing amount of activity in the bond market in the Philippines. With the current low interest rates we expect more Philippine corporates to be issuing bonds in the coming months.”

These successful transactions, along with others in the last few months, indicate the strong support in the Philippines, and across Asia more broadly, for corporate issuers to access the international bond markets.