Oil refiner Petron Corp. said Thursday it issued and listed P20 billion worth of fixed-rate bonds to retail investors, which represents the base offer of P15 billion and the oversubscription of P5 billion.
The listing is the first tranche of Petron’s shelf registration of P40 billion of fixed-rate bonds.
Petron said the issue was twice oversubscribed over the base offer and was priced at the tight end of the marketing range.
This is Petron’s first listing in the Philippine Dealing & Exchange Corp.
“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,” Petron president and chief executive Ramon Ang said.
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.
The P20-billion fixed rate bonds consist of Series A Bonds involving P13 billion maturing in five years with an interest rate of 4.0032 percent per annu and Series B Bonds with P7 billion maturing in seven years with an interest rate of 4.5219 percent per annum.
Petron said the proceeds would be used primarily to refinance existing indebtedness and fund working capital requirements.
Petron commissioned a $2-billion refinery upgrade at the start of the year which increased its capability to produce more high-value fuels and petrochemicals.
The refinery upgrade is supported by expanding retail network which now stands at 2,250 service stations, bigger than three of its biggest rivals combined.
“With our strategic investments beginning to bear fruit, we are well-poised to further strengthen our bottom line and sustain our growth momentum. We thank our partner institutions and the investing public for their continued trust and confidence,” Ang said.
The company targets to put up 200 additional stations this year and another 200 stations by next year, according to Petron chief finance officer Emmanuel Erana.
He said the company’s operating income may hit P20 billion this year while net income may increase by at least 30 percent for full year 2016. Petron reported a net income of P6.3 billion in 2015.
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.
