First Pacific to sell bonds backed by PLDT shares

Hong Kong-based investment and management firm First Pacific Co. Ltd. is selling 10-year bonds to raise $139 million or P6.16 billion to refinance loans maturing next year. “First Pacific proposes a 10-year US dollar bond issue 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," First Pacific said in a statement Monday. It’s wholly owned subsidiary, FPT Finance Ltd. will issue the bonds, according to First Pacific whose businesses center on the Philippines. FPT Finance hired Crédit Agricole CIB and Standard Chartered Bank as bookrunners and issue managers, First Pacific said in the statement. “Net proceeds from the bonds would enable the company to diversify its sources of funding and lengthen its debt maturity profile," the company said. The bonds will be secured by the shares held by First Pacific in Philippine Long Distance Telephone Co. (PLDT). First Pacific is also guaranteeing the 10-year bonds. First Pacific holds a 26.5-percent equity in PLDT, valued at $2.7 billion based on the telecommunications firm’s closing share price Monday. Japan’s NTT DoCoMo is also a major PLDT shareholder. With over 43 million subscribers or more than 50 percent of the market, PLDT is the largest telecommunications firm in the Philippines. Manuel V. Pangilinan is the managing director and CEO of First Pacific, as well as the chairman of PLDT. The telecommunications giant is followed by Globe Telecom Inc., a joint venture of Singapore Telecommunications Inc. and Philippine conglomerate Ayala Corp.. Globe has over 25 million subscribers. In 2009, PLDT posted a net profit of P39.8 billion, up 15 percent from a year earlier. Core earnings totaled P41.4 billion, up 8 percent in the same comparable period. —JE/VS, GMANews.TV