Oil refiner Petron Corp. set the interest rates for the P20-billion bond offering slated this month.
Petron said in a filing with the Securities and Exchange Commission the five-year bonds due 2021 would carry an interest rate of 4.0032 percent per annum while the seven-year bonds due 2023 would have an interest rate of 4.519 per annum.
Offer period will be from Oct. 13 to 19 while issue date was set on Oct 27.
Under the plan, Petron will issue P15 billion worth of five and seven-year bonds, with an oversubscription option for another P5 billion.
Proceeds for the fund raising activity will be used to refinance existing debt and to fund working capital requirements.
BDO Capital & Investment Corp., BPI Capital Corp. and SB Capital are the joint issue managers and joint underwriters for the offering.
The bonds, which will be listed with the Philippine Dealing & Exchange Corp., were rated PRS Aaa by Philippine Ratings Services Corp.