HK First Pacific Raises $400 Million

Hong Kong-based holding firm First Pacific Co. Ltd. raised 400 million U.S. dollars in fresh capital on Wednesday to refinance existing debt obligations.

The 10-year bonds were backed by the company's shares in Philippine Long Distance Telephone Co. (PLDT), Philippines' largest telecommunication firm, and yielded an interest rate of 6. 375 percent per annum.

The bond issue was also unsized to 400 million U.S. dollars and was 11.3 times oversubscribed, signaing a high degree of confidence in First Pacific by the financial markets.

"This bond offering comes at an auspicious time for First Pacific, coming on the heels of strong first half earnings and continuing success in our capital management program," First Pacific Managing Director and Chief Executive Officer Manuel V. Pangilinan said in a statement.

First Pacific holds a significant stake in some of Philippines ' major companies. Aside from PLDT, it has a stake in Metro Pacific Investments Corp. which is the majority shareholder of Manila Electric Co., the country's largest power distributor.

It also has investments in Philippines' various big hospitals, major tollroads, among others.