two American International Group investment funds have bought $200 million in exchangeable bonds in a Pacific Rim development company.

Pacific Century Regional Developments issued the bonds to AIA, a wholly owned subsidiary of AIG and the AIG-sponsored investment funds, AIG Asian Opportunity Fund LP, and AIG Asian Infrastructure Fund II LP, to raise funding for projects in Asia.

The bonds, due in 2006, allow holders to exchange the bonds into Pacific Century CyberWorks Limited (PCCW) shares. PCRD is the Pacific Century Group's flagship company in Singapore.

"The US$200 million proceeds from the bond issue provides funding to PCRD to pursue new business opportunities complementary to those of its subsidiary and affiliate companies,'' said Peter Allen, Chief Financial Officer of PCRD.

The initial exchange price is HK$19.00 per PCCW share. In the event that the bonds are redeemed, compound interest is payable on the principal value of the bonds at a rate of 3 percent per annum.

Pacific Century Regional Developments Limited is a Singapore-based company listed on the Singapore-based company listed on the Singapore Exchange Securities Trading Limited. PCRD's principal subsidiaries include Pacific Company CyberWorks Limited -- one of the world's largest Internet companies, and Pacific Century Insurance Holdings Limited, both of which are listed on The Stock Exchange of Hong Kong Limited.