Phoenix Petroleum lists P3-B papers
Credit to Author: Jordeene B. Lagare| Date: Fri, 13 Dec 2019 17:38:24 +0000
PHOENIX Petroleum Philippines Inc. has listed P3 billion worth of short-term commercial papers on the Philippine Dealing and Exchange Corp. (PDEx).
The Series C papers, which carry a fixed discount rate of 4.6657 percent per annum, is part of the listed oil company’s three-year P10-billion commercial paper program registered with the Securities and Exchange Commission.
Proceeds shall be used to finance working capital requirements for its importation and sale of petroleum products.
“More than a fundraising activity, for us, the STCP (short-term commercial program) is a simple, ingenious approach in meeting working capital requirements in an efficient, cost effective way,” Phoenix Petroleum Chief Financial Officer Ma. Concepcion de Claro said at the listing ceremony on Wednesday.
PNB Capital and Investment Corp. is the sole issue manager, lead underwriter and bookrunner for the transaction.
Phoenix Petroleum earlier said it expected net proceeds of approximately P2.82 billion from the sale of the papers, issued in denominations of P1 million each, as minimum, and in multiples of P100,000 thereafter, and traded in denominations of P100,000 in the secondary market.
According to the company, the Philippine Rating Services Corp. gave the papers an “RS Aa minus (corp.)” rating.
The local debt watcher took into consideration the continued growth of the company’s retail presence and market leadership, especially among independent oil players; significant growth potential, given its entry into other related or complementary business ventures; and improving sales volume — which, however, is offset by rising costs, expenses and finance charges — in granting the rating.
The listing comes a year after Phoenix Petroleum issued the first tranche of these papers worth P7 billion. This was followed by the second series of commercial papers worth P3.5 billion in August.
Phoenix Petroleum shares rose by 20 centavos or 1.77 percent to close at P11.50 each on Friday.