Phoenix Petroleum lists ₱3-B CP issue

Published December 13, 2019, 12:00 AM

by manilabulletin_admin


By Myrna M. Velasco

Uy-led firm Phoenix Petroleum Philippines, Inc. has listed its ₱3.0 billion worth of short-term commercial papers (STCP) issuance with the Philippine Dealing and Exchange Corporation (PDEx).

This batch of STCP issue is already the third in a series of offers it had undertaken based on the ₱10-billion commercial paper program that it registered with the Securities and Exchange Commission.

“The proceeds of the listed STCP will be used to finance working capital requirements for its importation and sale of petroleum products,” the oil company said.

Phoenix Petroleum Chief Financial Officer Ma. Concepcion F. de Claro has indicated that “more than a fund raising activity, the STCP program is a simple, ingenious approach in meeting working capital requirements in an efficient, cost effective way.”

The maturity date of that new series of CP issuance will be 360 days from the issue date or until December 5, 2020; at a maturity value that will be equal to 100 percent of the CPs’ face value. Denomination will be at ₱1,000,000 each as a minimum; and will be in multiples of ₱100,000 thereafter, according to the oil company.

The sole issue manager and underwriter/arranger of the CP offer is PNB Capital and Investment Corporation; while trustee is Philippine National Bank Trust Banking Group. The registrar and paying agent will be the Philippine Depository & Trust Corporation.

The company has been reinforcing its fund raising activity in recent months– primarily to access funding for its working capital as well as for the refinancing of maturing debts.

Last month, the company also concluded its ₱7.0 billion worth of series-4 preferred shares issuance, which was reported to be three times oversubscribed.