Philippine Airlines (PAL)—controlled by tobacco and banking tycoon Lucio Tan—has raised $300 million through the sale of five-year bonds, providing funds to help fund the flag carrier’s fleet modernization and expansion.

The five-year senior unsecured guaranteed bond was priced at 7.75% and issued by wholly owned subsidiary Primero Agila, the Philippine flag carrier said in a statement. The bonds were 4.5 times oversubscribed with an orderbook of more than $1.4 billion, it said.

It’s the first bond sale for PAL........

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