MANILA - A BILLION-dollar bond offering by a Philippines state agency was nearly six times subscribed, the government and reports said on Wednesday.

The offering by the Power Sector Assets and Liabilities Management Corp. (PSALM), attracted some US$5.7 billion (S$8.3 billion) in demand, Dow Jones Newswires said.

About 55 per cent of the bonds were allocated to Asia, while 17.5 per cent went to Europe. Twenty-seven per cent were booked in the United States, the agency said.

It said 208 foreign investors participated in the transaction, it said. The bond was the first from a power company out of Asia this year.

'The strong response to our debut offering signifies the confidence of investors globally in PSALM and (in) our ability to deliver on our privatisation and liability management mandate,' PSALM president and chief executive Jose Ibazeta said in a statement.

Finance Secretary Margarito Teves said the enthusiastic response to the bond offering reflected investor confidence 'in the overall economic prospects of the country.

Proceeds from the bond, which are unconditionally guaranteed by Manila, will go to funding requirements as well as servicing of debts owed to independent power producers.

PSALM was established in 2001 to run and manage the assets and liabilities of the debt-ridden National Power Corp.