Petron Corp, the largest oil refining and marketing company in the Philippines, made its debut in the Philippine Dealing & Exchange (PDEx) on Thursday, raising up to $412.5 million (P20 billion).
PDEx is the dealing exchange for major banks in the Philippines.
The Ang-led company issued and listed P20 billion in Fixed Rate Bonds to retail investors, representing the base offer of P15 billion and the oversubscription of P5 billion. This is the first tranche of Petron’s shelf registration of P40 billion of fixed rate bonds.
The issue was twice oversubscribed and was priced at the tight end of the marketing range.
“We are very pleased with the outcome of our fundraising exercise. The success of the transaction underscores Petron’s leadership position in the industry as well as its long-term growth potential,” said Petron president and CEO Ramon S. Ang.
The P20 billion fixed rate bonds consist of Series A Bonds – P13 billion maturing in five years with an interest rate of 4.0032 per cent per annum – and Series B Bonds – P7 billion maturing in seven years with an interest rate of 4.5219 per cent per annum.
Proceeds will be used primarily to refinance existing indebtedness and fund working capital requirements.
PhilRatings assigned Petron’s issue with a PRS Aaa, its highest credit rating. Obligations rated PRS Aaa are of the highest quality with minimal credit risk.
At the start of 2016, Petron commissioned its $2 billion refinery upgrade which increased its capability to produce more high-value fuels and petrochemicals. This is supported by its expanding retail network which now stands at 2,240 service stations – touted as the most extensive in the industry.
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“With our strategic investments beginning to bear fruit, we are well-poised to further strengthen our bottom line and sustain our growth momentum,” Ang said. “We thank our partner institutions and the investing public for their continued trust and confidence.”
BDO Capital & Investment Corp, BPI Capital Corp, and SB Capital Investment Corp are the Joint Issue Managers, Joint Lead Underwriters and Joint Bookrunners for Petron’s latest offer.
East West Banking Corp and First Metro Investment Corp are the Co-Lead Underwriters while PNB Capital and Investment Corp is the Participating Underwriter for the transaction.
Petron also claims to be a leading player in the Malaysian market. It has a combined refining capacity of 268,000 barrels-per-day and produces a full range of world-class fuels and petrochemicals. It has over 2,850 service stations where it retails gasoline and diesel.
Petron’s last trading price increased 2.94 per cent or P0.300 to close at P10.50.