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First Pacific Cptl (78JZ)


Wednesday 09 January, 2002

First Pacific Cptl

Loan Status; Tender for CBs

First Pacific Capital (1997) Ld
9 January 2002



Wednesday, 9 January 2002


MPC to outline plan to reduce outstanding financial obligations

First Pacific announces that its wholly-owned subsidiary, Larouge, has been
advised by MPC that it is unable to repay the US$90 million loan, which had
been extended by Larouge to MPC in April 2001. The loan was due and payable on
31 December 2001, and was secured by a pledge over shares that MPC owns in

Larouge, as a secured creditor in respect of a 50.4 per cent equity interest
in BLC, will now co-manage, with MPC, the on-going sale of MPC's 69.6 per cent
controlling stake in BLC. When agreement is reached for such a sale, First
Pacific intends to offer the 50.4 per cent interest in BLC, which it holds as
a secured creditor, as part of the sale transaction.

In tandem, MPC is in the process of finalising a plan to reduce its overall
existing financial obligations, which plan will be announced no later than the
end of February 2002.

Additionally, in order to allay any convertible bond repayment concerns that
might exist as a result of this development, First Pacific announces that its
wholly-owned subsidiary, First Pacific Capital (1997) Limited, will make a
tender offer for all of the convertible bonds currently outstanding. First
Pacific will repay the principal amount of US$208 million, at a total cost
including interest and redemption premium of approximately US$281 million, by
US$90 million of cash on hand and by drawing down sufficient funds from the
HK$1.56 billion (US$200 million) facility previously announced. The tender
offer is subject to the approval of the trustee appointed in relation to the
convertible bonds, with whom First Pacific is in discussions. Further details
of the tender offer will be announced as soon as discussions with the trustee
are finalised.

                                    * * *

For further information, please contact:

First Pacific Company Limited
Rebecca Brown                                   Tel: (852) 2842 4301
Executive Vice President
Group Corporate Communications

Sara Cheung                                     Tel: (852) 2842 4336
Assistant Vice President
Group Corporate Communications

Information about First Pacific can be accessed on:

Web Site:    
E-mail:                [email protected]

                                    * * *


BLC         Bonifacio Land Corporation (BLC) is a 55.0 per cent shareholder in
            a joint venture project with the Philippine Government that
            commenced, in 1995, the re-development of a 155-hectare portion of
            a new Metro Manila central business district (namely the 'Bonifacio
            Global City'), that previously was a Philippine military base. MPC,
            having reviewed strategic alternatives, determined in November 2001
            to offer for sale its entire 69.6 per cent controlling interest in
            BLC and appointed ING Barings to advise it in connection with the
            disposal. Due, principally, to continued depressed real estate
            values in the Philippines, MPC has not yet been able to conclude a
            sale of its interest in BLC. However, MPC remains in discussions
            with potential purchasers for such interest.

Convertible In March 1997, US$350 million of five-year convertible bonds were
bonds       issued by First Pacific Capital (1997) Limited, a wholly-owned
            subsidiary of First Pacific, at a coupon rate of 2 per cent. The
            bonds may be converted into shares up until March 2002 at a strike
            price of HK$12.25 per share, and are redeemable at a price of 134
            per cent of face value. First Pacific has to date canceled
            approximately 41 per cent of the amount originally issued, and has
            accrued the premium to maturity since 1997.

MPC         Metro Pacific Corporation (MPC), which is based and listed in
            Manila, principally holds property assets, including Bonifacio Land
            Corporation, Landco Pacific and Pacific Plaza Towers. First
            Pacific's attributable economic interest in Metro Pacific is 80.6
            per cent.


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