Phoenix Petroleum Philippines raised P7 billion through the listing of commercial paper on Philippine Dealing and Exchange Corp. on Thursday.
“We are very pleased with the results of the offer. We received bids of over P9 billion for the initial series, which goes to show how strong investor confidence is in the Phoenix Petroleum and its future growth prospects,” PNB Capital president and chief executive officer Gerry Valenciano said.
PNB Capital acted as the sole issue manager for the commercial paper program and lead underwriter and sole book runner of the initial series.
Phoenix said the sale served as the maiden series of the company’s P10-billion commercial paper program, which would be issued and reissued over a three-year period. It is a milestone in the debt securities market, being the first program of its kind to be approved by the Securities and Exchange Commission.
The initial offer of commercial paper is composed of two sub-series amounting to P3.5 billion each. Series A-1 has a fixed discount rate of 7.0937 percent and a tenor of 180 days, while Series A-2 has a fixed discount rate of 7.4717 percent and a tenor of 360 days.
Phoenix Petroleum initially filed a registration statement for the commercial paper program and the initial series with the SEC on October 17, 2018.
The SEC issued the permit to sell on December 18, 2018, allowing Phoenix Petroleum to issue and reissue P10 billion worth of commercial paper over a three-year period pursuant.
“Phoenix Petroleum has long recognized the role of the financial markets as a vital and dynamic source of funding for our initiatives. This is why, today, we mark another milestone with the biggest issuance of commercial paper at P10 billion,” Phoenix Petroleum chief finance officer Ma. Concepcion de Clasro said.
Phoenix Petroleum said it would be able to reissue commercial paper without having to file for a new permit to sell provided the total amount of commercial paper outstanding at any time did not exceed the amount of the program,
“As the need arises, Phoenix Petroleum has the flexibility to tap the capital market for its working capital requirements. The entire process has been streamlined since the registration statement and permit to sell issued by the SEC are valid for three years,” Valenciano said.
Phoenix is one of the country’s most aggressive oil companies today.
The company posted a 59-percent increase in net income to ₱969.8 million in the first half from P610 million year-on-year.