Silknet cranks it up to 11

摘要

Georgia's silknet reached its objective on Tuesday even if the company had to pay a double-digit yield to overcome concerns around an illiquid offering from a small, relatively unknown credit. The fixed-line and mobile operator had a difficult trade to execute but a helpful backdrop and enough demand from anchor accounts for high yielding assets helped the corporate sell a US$200m five-year non-call three bond at 11%. "They know there is a pricing benefit which comes from doing a larger and more liquid transaction, but it would have meant overextending themselves," said a lead. "Georgia is a small country and the corporates are small, so you will get a small transaction."