Petron lists P18B in fixed rate bonds

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Petron Corp. was listed on the Philippine Dealing and Exchange Corp on Tuesday. (PDEx) 18 billion pesos of fixed-rate bonds, denominated in pesos, that would help the country’s only crude oil refiner to pay off debts and finance a power plant project in Bataan.

The two-series issue is the first installment of Petron’s 50 billion peso off-the-shelf registration that has been approved by the Securities and Exchange Commission (SEC).

This is 9 billion pesos of bonds maturing in 2025 with an interest rate of 3.4408% per annum and another 9 billion pesos maturing in 2027 with an interest rate by 4.3368% per year.

The company said the show, its third PDEx listing, had been almost three times oversubscribed. PhilRatings gave it a credit rating of PRS Aaa.

“We are particularly proud of the welcome from our retail investors, demonstrating their confidence in Petron and our future as a company,” Petron President and CEO Ramon Ang said in a statement.

“Despite some of the challenges we still face, we continue to pursue our strategic goals and ensure long-term growth for the company,” said Ang.

Petron brought in BDO Capital & Investment Corp. as the sole program manager. BDO Capital, China Bank Capital Corp., Philippine Commercial Capital Inc., PNB Capital and Investment Corp. and SB Capital Investment Corp.

In addition, First Metro Investment Corp., Land Bank of the Philippines and RCBC Capital Corp. were selected as co-leaders.

The proceeds from this fundraising will be used primarily for the repayment of outstanding Petron bonds which mature this month, as well as for the payment of existing debt.

In addition, Petron is constructing a new 44 megawatt power plant at Limay to increase the power generation capacity of its existing 140 MW power plant in the refinery complex.

The new generator is expected to be completed and operational in the second half of 2022 after testing, synchronization and pre-commissioning activities.

Petron said last September that construction of the plant, which began in the first half of 2019, was about 90 percent complete.

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