PCCW yesterday completed its first unsecured bond offering, raising US$456 million through private placement. The new round of capital raising represented almost 60 per cent of the outstanding loans of PCCW-HKTC, a PCCW subsidiary, extending the maturity of its US$4.2 billion loan portfolio. PCCW-HKTC, a company pledged to raise US$12 billion to finance chairman Richard Li Tzar-kai's leveraged buyout of the former telephone monopoly, is left with US$771 million in debt due in 2007 at the earliest. After the transaction, PCCW could lower the debt level to US$315 million, and move a step closer to its plan to issue more bonds. A Deutsche Bank spokesman last night confirmed PCCW had completed its first placement of a 10-year bond. 'The issue represents PCCW's unsecured borrowing debut and continues PCCW's stated strategy of opportunistically accessing the international debt capital markets for attractively priced funds while extending their debt-maturity profile with long-tenured instruments,' Deutsche Bank spokesman Michael West said. He declined to reveal the interest spread, but the pricing level was 'typically associated with investment-grade corporates'. 'PCCW may use the funds for general corporate purposes including management's strategy of improving the credit profile of both PCCW and HKTC,' he said.