LISTED oil giant Petron Corp. said on Wednesday that it has completed the offering of up to P32 billion worth of fixed-rate retail bonds.
The offering consists of up to P25 billion in retail bonds, with an oversubscription option of up to P7 billion, Petron said in a stock exchange disclosure.
The retail bonds will be drawn from the bond shelf registration, which was rendered effective by the Securities and Exchange Commission and remains valid until September this year.
The bonds were offered from June 24 to 30 and are set to be issued by July 7, or “such other date as the issuer and the joint lead underwriters and joint bookrunners may agree in writing.”
The bonds will also be listed on the Philippine Dealing & Exchange Corp.
PNB Capital and Investment Corp. acted as the sole issue manager for the offer, while Bank of Commerce, BDO Capital & Investment Corp., China Bank Capital Corp., First Metro Investment Corp., Land Bank of the Philippines, Philippine Commercial Capital, Inc., and PNB Capital and Investment served as joint lead underwriters and joint bookrunners.
Proceeds from the issuance were allocated for the repayment of Series D Bonds and Series E Bonds, both maturing in October this year; repayment of existing debt; repayment of short-term loans used to fund working capital requirements; and general corporate purposes.
In 2021, the oil refiner raised about P18 billion from the first tranche of its P50-billion shelf registration.
Amid market challenges and uncertainties, Petron reported a 2% increase in its net income to P4.03 billion for the third quarter from P3.95 billion in the same period last year.
“We continue to operate in a volatile and unpredictable market. As we navigate through these setbacks, we remain committed to enhancing our efficiency and strengthening our performance to sustain our market leadership and further our role as a nation-builder,” said Petron President and Chief Executive Officer Ramon S. Ang.
Petron emerged as the leading oil industry player with a market share of 24.9% as of June 2024, data from the Department of Energy showed.
The company has a combined refining capacity of nearly 270,000 barrels a day. It operates about 50 terminals in the region and has around 2,700 service stations where it sells gasoline and diesel. — Sheldeen Joy Talavera
