MANILA - Metro Pacific Investment Corp. (MPIC) said Friday it would issue P12 billion ($252.8 million) worth of notes to fund the purchase of a 6.7% stake in Manila Electric Co. (Meralco).

The local unit of Hong Kong's First Pacific Co. Ltd. said the 9-year fixed rate notes would be issued in one or more tranches and would be secured by Meralco shares. First Metro Investment Corp. and PNB Capital and Investment Corp. were appointed as lead underwriters.

MPIC is also an affiliate of local telecommunications giant Philippine Long Distance Telephone Co. (PLDT), a major shareholder of Meralco.

Lopez-led First Philippine Holdings Corp. (FPHC) chose to divest half of its 13.4% Meralco stake to MPIC on Thursday. The transaction, worth P22.4 billion, can be completed up to March next year.

MPIC exercised its right-of-first-refusal and matched the P300-per-share offer of TriRatna Holdings Corp., a company allied to San Miguel Corp., another major Meralco shareholder.

TriRatna is led by Henry Sy Jr., the son and namesake of the country's richest man. Report from Reuters