The maiden bond issuance carried a coupon of 6.5 percent a year, the lowest coupon rate achieved by a Philippine issuer for an overseas debt with a maturity of more than five years.

AGI, which was actively traded stock at the Philippine Stock Exchange yesterday, defied the equities downturn and saw its share price rise 0.49 percent to P6.20 each on news of the successful bond foray. Analysts said that after borrowing at a very cheap rate, AGI could gain in peso terms given the bearish trend of the dollar.

“We are extremely pleased with the response of the investor community on our inaugural bond issue,” Tan said in a press statement.

Lauro Baja, managing director of UBS, which acted as sole lead manager and sole bookrunner for the transaction, said in an interview that the offering was more than nine times oversubscribed, with the order book hitting nearly $4 billion. About 17 percent of the issuance was taken up by investors from the Philippines while Hong Kong and Singapore jointly accounted for 72 percent. Europe had a share of 7 percent while offshore US accounts took up 4 percent.

“There was no roadshow and it was oversubscribed at the first 30 minutes,” Baja said. He added that AGI was originally planning to raise only $300 million from the overseas bond market but took advantage of strong market demand to upsize the offering.

The issuance was priced on Thursday at a yield of 6.625 percent, which was tightened from an initial guidance yield of 6.75 percent.

“It’s a tribute to the success of Andrew Tan and his vision for Alliance Global. The investors are comfortable with credit profile and business assets—Megaworld, Travelers, Emperador and also McDonalds,” Baja said.

It was also seen as a good time to tap the overseas bond market given the robust demand for Philippine debt paper.

AGI’s revenues are driven primarily by its real estate development arm Megaworld, which accounts for 46 percent of the business. The consumer business contributes about 44 percent primarily through liquor manufacturer Emperador Distillers and fastfood restaurant holding firm Golden Arches Development Corp.

Emperador Distillers produces leading brandy labels Emperador and Generoso. Golden Arches is the master franchise holder of McDonald’s in the Philippines.

AGI’s fourth business group--Travellers International Hotel Group--is the developer and operator of Resorts World Manila, the country’s first integrated tourism estate in Newport City located across from Terminal 3 of the Ninoy Aquino International Airport. It is a joint venture between AGI and Genting Hong Kong Ltd. (formerly named Star Cruises Ltd. of Hong Kong), the third-biggest cruise line operator in the world and part of the Malaysian conglomerate Genting Berhad.

Proceeds from the offering will be used by AGI to partly refinance existing debt as well as to fund the expansion of its operating units.