Petron Corp., the country’s largest oil company, on Tuesday listed its P18-billion fixed-rate, peso denominated bonds on the Philippine Dealing and Exchange Corp. (PDEx).
The amount represents the first tranche of the company’s shelf registration of P50-billion fixed-rate bonds approved by the Securities and Exchange Commission (SEC).
The issue, Petron’s third PDEx listing, was nearly thrice oversubscribed.
“We’re particularly proud of the reception from our retail investors, signifying their confidence in Petron and our future as a company. Despite some of the challenges we still face, we continue to pursue our strategic goals, and ensure that we deliver long-term growth for the company. We are motivated to work harder in sustaining our leadership, knowing that we remain a viable and trusted investment option,” said Petron President and CEO Ramon Ang.
The P18-billion fixed-rate bonds consist of Series E Bonds—P9 billion maturing in 2025 with an interest rate of 3.4408 percent per annum— and Series F Bonds—P9 billion maturing in 2027 with an interest rate of 4.3368 percent per annum.
Proceeds from this fundraising exercise will be used primarily for the redemption of Petron’s outstanding Series A Bonds due in October this year, payment of existing indebtedness, and partial payment of the power plant project.
The country’s lone oil refiner is building a new power plant in Limay, Bataan to increase the capacity of its exis ing 140-MW power plant to 184-MW. It is expected to be completed and operational in the second half of 2022 after testing, synchronization, and pre-commissioning activities.
PhilRatings assigned Petron’s issue with its highest credit rating of PRS Aaa. Obligations rated PRS Aaa are of the highest quality with minimal credit risk.
Petron partnered with BDO Capital & Investment Corporation as sole issue manager, as well as with its joint lead bookrunners and joint lead underwriters BDO Capital & Investment Corp., China Bank Capital Corp., Philippine Commercial Capital, Inc., PNB Capital and Investment Corp., and SB Capital Investment Corp. First Metro Investment Corp., Land Bank of the Philippines, and RCBC Capital Corp. are co-lead underwriters for Petron’s latest offer.