Petron Corporation, the country’s largest oil company and only remaining refiner, listed today on the Philippine Dealing and Exchange Corporation (PDEx) P18 billion in fixed-rate, peso-denominated bonds, 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, which is Petron’s third PDEx listing, was nearly thrice oversubscribed over the base offer of P18 billion.
“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 S. Ang.
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.
The P18 billion fixed rate bonds consist of Series E Bonds – P9 billion maturing in 2025 with an interest rate of 3.4408% per annum – and Series F Bonds – P9 billion maturing in 2027 with an interest rate of 4.3368% 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 homegrown oil giant is building a new power plant in Limay, Bataan to increase the capacity of its existing 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.
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 Corporation, China Bank Capital Corporation, Philippine Commercial Capital, Inc., PNB Capital and Investment Corporation, and SB Capital Investment Corporation.
First Metro Investment Corporation, Land Bank of the Philippines, and RCBC Capital Corporation are Co-Lead Underwriters for Petron’s latest offer.