Singapore's GIC invests $95.7m in Philippines' canned fish producer

MANILA (Reuters) - Singapore's sovereign wealth fund, GIC, has agreed to extend a 3.4 billion peso (S$95.7 million) loan convertible into equity to the parent of Century Pacific Food Inc, ahead of the latter's Philippine listing.

Century Pacific told the Philippine Stock Exchange on Friday its parent, canned fish producer Century Canning Corp, will use the proceeds to finance expansion.

Century Pacific will be listed on May 6 following a 3.2 billion peso initial public offering.

The loan agreement is for one year, but may be extended by either party and carries an interest rate of 5 per cent.

GIC will have the option to exchange both the principal and accrued interest into 245.5 million issued and outstanding shares of Century Pacific, which will come from shareholdings of Century Canning and are equivalent to an 11 percent stake.

Century Pacific is valued at about US$689 million (S$863 million) based on its IPO price of 13.75 pesos. It is the country's second listing this year.