FPC plans $300-million bond issue

MANILA, Philippines - Hong Kong-based industrial conglomerate First Pacific Co. Ltd. (FPC) is planning to issue $300 million worth of 10-year bonds, secured by shares in Philippine Long Distance Telephone Co. (PLDT).

In a disclosure to the Hong Kong Stock Exchange yesterday, First Pacific said the bond issue is in line with the group’s efforts to “enhance its debt management program while taking advantage of relatively high liquidity in the debt market to secure refinancing of borrowings falling due in 2011.”

The bonds will also be guaranteed by First Pacific, an investment and management company with operations across Asia.

First Pacific, which focuses on telecommunications, infrastructure, consumer food products and natural resources, said net proceeds from the bond issue would allow it diversify its sources of funding and lengthen its debt maturity profile.

The bonds will be issued by FPT Finance Ltd, a direct wholly-owned unit of First Pacific.

PLDT is a leading telecommunications service provider in the Philippines, offering the largest and most diversified range of telecommunications services across the most extensive wireless, fixed line, broadband and satellite networks in the country.

First Pacific has mandated Agricole CIB and Standard Chartered Bank as joint bookrunners and lead managers for this guaranteed secured bond offering.

This will be the second time this year that First Pacific has sold a global bond. It made a $300 million, seven-year bond issue in July that was 5.8 times oversubscribed. The bonds were secured by shares in its Philippine flagship Metro Pacific Investment Corp. and guaranteed by First Pacific.