Leading oil industry player Petron Corporation is seeking extension from the Securities and Exchange Commission (SEC) for the shelf registration of its P50 billion worth of programmed peso fixed-rate bonds issuance.

The company stated that in its disclosure to the Philippine Stock Exchange (PSE), but it has not specified the timeframe for the targeted extension.

The fixed rate bonds shelf registration was approved by the SEC in 2021; and the oil firm’s target then was to carry out two to three tranches of issuance within a span of three years or until 2024.

The first tranche which comprised of P18 billion public offer was completed in October 2021, including its listing with the Philippine Dealing & Exchange Corp (PDEx) – and P9 billion of the raised amount will mature in 2025; while the other P9.0 billion will fall due in 2027.

Proceeds from that fund raising activity had been primarily used for the redemption of Petron’s Series A bonds which matured in 2021; then the balance had been funneled as payment to other existing debts as well as capital outlay for expansion of the on-the-fence power plant of its Limay refinery in Bataan.

It is apparent that from the initial tranche three years ago, Petron still has remaining tranches that it can exercise from its shelf registered bonds issue.

Petron previously indicated that its main operational focus will be to ramp up its refinery run both in Limay and Port Dickson refinery in its offshore market of Malaysia; and sustaining its market leadership particularly in the Philippines.

In the same filing with the local bourse, Petron similarly announced board approval on its “public offer and issuance of additional Series 4 preferred shares of up to 17 million shares,” that shall account for the second tranche of its Series 4 preferred shares that have been under shelf registration with the SEC.

The features of the issue, according to the company, will be subject to the determination of the management of Petron – including the conduct of a written assent solicitation from stockholders as of July 10, 2024 record date and closing of books from July 10-17 this year.

The company will also be pursuing redemption of its Series 3A preferred shares as of record date of November 21 this year.