MANILA, Philippines – Enrique Razon, Jr-led port operator International Container Terminal Services, Incorporated (ICTSI) has raised $450 million to mainly fund its capital spending budget for the year, to be used for local and overseas port expansion.
Through its offshore unit Royal Capital BV, ICTSI executed its second perpetual bond issue for the year, which was priced at par to yield 5.5% per year, the company disclosed to the Philippine Stock Exchange on Wednesday, August 19.
Perpetual bonds pay a steady stream of interest forever, but the principal is not redeemable. Companies issue these bonds to to raise money. Instead of loans, the issuer makes interest payment to the bond buyer for a specific period.