Alliance Global issues $500-M worth of bonds

Andrew Tan-led Alliance Global Group Inc. has issued $500 million in bonds that will be used to finance the company's capital expenditures and existing debts. "The net proceeds of the offering will be used to finance [Alliance Global's] capital and project expenditures, refinance certain existing indebtedness of its subsidiary businesses and for general corporate purposes," the company said in a disclosure to the Philippine Stock Exchange Friday. Alliance Global said it raised its seven-year international bond to $500 million from $400 million. "We are extremely pleased with the response of the investor community on our inaugural bond issue," Alliance Global chairman Andrew Tan said in a statement. This is the first time that it issued bonds, carrying a coupon of 6.5 percent and was priced at a yield of 6.625 percent. Alliance Global president Kingson U. Sian said the company believes that the "deal demonstrates investor confidence in Alliance Global's business model and operations." UBS Investment Bank was the sole lead manager and sole bookrunner for the transaction. -JE/OMG, GMANews.TV