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GIC invests S$96m in Century Canning Corp

Singapore's sovereign wealth fund GIC has made a 3.4 billion peso (about S$96 million) investment in the parent company of a Philippine food company that will be listed on May 6.

SINGAPORE: Singapore's sovereign wealth fund GIC has made a 3.4 billion peso (about S$96 million) investment in the parent company of a Philippine food company that will be listed on May 6.

GIC's investment in Century Canning Corp (CCC) is via an Exchangeable Loan Agreement for one year that is extendable by both parties. The loan carries an interest rate of 5 per cent.

CCC will use the proceeds to finance the growth and expansion of its subsidiaries including Century Pacific Food Inc (CNPF), which produces fish and meat products such as tuna and corned beef for local and export markets.

CNPF's businesses also include canned and powered milk and other dairy products as well as coffee mixes.

GIC -- which manages well over US$100 billion of Singapore's reserves -- has the option to convert the CCC loan and accrued interest into 245.5 million existing CNPF shares, giving it about 11 per cent of CNPF.

GIC described its investment as "a vote of confidence" in the Philippine economy as well as the value and management capability of both CCC and CNPF.  

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