Axa Asia-Pacific to raise £310 mln to cut debt

By Denny Thomas

SYDNEY (Reuters) - Australian fund manager and insurer Axa Asia-Pacific Holdings Ltd (AXA.AX) plans to raise at least A$660 million (310 million pounds) by selling new shares to pay down some of its debt, it said on Tuesday.

Axa Asia-Pacific joins a list of local blue chips, including rival insurer AMP (AMP.AX), rushing to raise equity as difficult credit markets make it hard to raise debt.

Fund managers said there could more firms tapping the equity markets, specially companies that struggling to refinancing their maturing debts. The recent pull back in stock markets could encourage companies, analysts said.

"Certainly if the rally persists, there will be more," said Rob Patterson, managing director of Argo Investments, which oversees about A$2.5 billion.

"AXA were on the list of expectations. It's not really surprising and probably by getting it out of the way, they give themselves a chance to rally," he said.

An estimated $39.1 billion of loans are due to mature for Australian companies in 2009, the highest in the Asia Pacific region, according to data compiled by Thomson Reuters LPC data.

"I think there is still some more refinancing...there is probably more of that to come," Patterson added. His funds plan to participate in AXA's offer.

Ports operator Asciano (AIO.AX) and waste management group Transpacific Industries (TPI.AX) are among many companies that are facing debt maturities.

The new funds would lift AXA's total assets to A$900 million-A$1 billion, above the minimum regulatory requirement for insurers, and up from A$779 million estimated at end-December.

The new capital would cut AXA's gearing ratio to 41 percent from 56.1 percent, the company said.

AXA Asia Pacific's biggest shareholder and parent, French insurer AXA (AXAF.PA), will participate in the raising, enabling it to maintain its current shareholding of 53.2 percent.

AXA shares were placed on trading halt on Tuesday pending completion of the placement.

The fully underwritten institutional placement is being offered at A$2.85 each, a 11.5 percent discount to the last traded price. The total funds raised through the offer, including the retail component, is estimated at A$890 million, AXA said.

Goldman Sachs JBWere and UBS AG Australia are underwriters.

(Editing by Ian Geoghegan)