Petron Corp. will issue senior perpetual capital securities to raise $550 million which will be used mainly for debt repayment and for general corporate purposes.
The oil company said it will issue senior perpetual capital securities on April 19. The distribution rate is 5.95 percent per annum until April 19, 2026, payable semi-annually on April 19 and October 19.
The securities will be listed on the Singapore Exchange Securities Trading Ltd. (SGX-ST). “The securities will be traded on the SGX-ST in a minimum board lot size of $200,000 for as long as the securities are listed on the SGX-ST and the rules of the SGX-ST so require,” Petron’s final offering circular stated.
The oil firm has tapped Hongkong and Shanghai Banking Corp. Ltd. (HSBC) as sole global coordinator while the joint lead managers and joint bookrunners for the capital raising activity are DBS Bank Ltd., HSBC, MUFG Securities Asia Ltd., SMBC Nikko Capital Markets Ltd., Standard Chartered Bank and UBS AG Singapore branch.
BDO Capital & Investment Corp., China Bank Capital Corp., and PNB Capital and Investment Corp. are the domestic lead managers. Petron has temporarily ceased operation of its 180,000 barrels per day refinery in Bataan. It will resume operations in May or June this year.
It is now seeking to complete the requirements cited by the Authority of the Freeport Area of Bataan (AFAB) to make Petron’s Bataan refinery one of the registered enterprises of the freeport zone. This move also involves an additional investment of P3 billion in the next 5 years.
The country’s largest oil company also plans to build a Refinery Solid Fired Boiler (RSFBB-3) Phase 3 that would entail an investment of P11 billion.
Dubbed as the “Petron Refinery Special Projects” the main facilities of the project will be two 200 tph Circulating Fluidized Broiler (CFB), two 22megawatt Backpressure Turbine Generators, 500-meter fuel transfer line. m The oil firm posted a net loss of P11.4 billion in 2020, from the previous year’s P2.3-billion net income, as revenues plummeted by 44 percent to P286 billion.
“Our demand is low, fuel demand is very low,” said Petron President and Chief Executive Officer Ramon S. Ang.
Despite this, he said Petron will continue to expand its retail network, which has around 2,800 service stations. “We will continue to expand our network especially if there’s a good location.”
Petron’s operations in Malaysia, he said, are “much better than the Philippines.”
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