Petron Corp., the biggest petroleum retailer, said it plans to raise up to P20 billion in five and seven year fixed rate bonds in October.
The P20-billion fixed rate bonds represent the first tranche of the P40 billion worth of bonds it earlier filed with the Securities and Exchange Commission.
Petron said in a filing with the Securities and Exchange Commission it would use the proceeds from the bonds to refinance existing debts and fund working capital requirements.
The oil company will initially issue P15 billion, with an oversubscription option of up to P5 billion. The balance of P20 billion, assuming the oversubscription will be exercised, will be placed under shelf registration for issuance within three years.
Petron hired BDO Capital & Investment Corp., BPI Capital Corp. and SB Capital as joint issue managers and joint underwriters for the offering.
The bonds, which will be listed with Philippine Dealing & Exchange Corp., have been rated PRS Aaa by Philippine Ratings Services Corp.
PRS Aaa is the highest rating assigned by PhilRatings. Obligations rated PRS Aaa are of the highest quality with minimal credit risk.
The rating was arrived at after considering Petron’s leading market position in the Philippines and an increasing presence in Malaysia, and its defined strategies to support future growth.
PhilRatings noted the company’s strong revenue generation, supported by growing sales volume, with profitability margins expected to improve over the projected period.
Petron is the largest integrated oil refining and marketing company in the country with an overall market share of 32.8 percent as of December 31, 2015.
It operates a refinery in Limay, Bataan with a crude oil distillation capacity of 180,000 barrels per day.
