PHOENIX Petroleum Philippines, Inc. has set the issue date of its commercial paper offering on Dec. 27, after the initial offer of P7 billion ended on Thursday, a company official said.
“(The proceeds will be used) to refinance existing short-term loans of the issuer which were used to finance working cap[ital] requirements for importation of fuels,” said Phoenix Petroleum’s Vice-President for External Affairs Raymond T. Zorrilla in a text message.
Phoenix Petroleum previously said some of its short-term loans with BDO Unibank, Inc., Asia United Bank Corp., Robinsons Bank Corp., United Coconut Planters Bank, and Development Bank of the Philippines are due in December.
Mr. Zorrilla said the initial offering size is in two series, with Series A-1 at P3.5 billion set at a maturity of 180 days at a discount rate of 7.0937%. Series A-2 commercial papers at P3.5 billion are for 360 days, and have a discount rate of 7.4717%.
The offering period started on Dec. 18.
On Wednesday, Phoenix Petroleum said the Securities and Exchange Commission (SEC) had approved the registration of the company’s P10 billion worth of commercial papers and its permit to sell the securities.
On Thursday, shares in the company closed lower by 2.74% at P10.64 each.
Phoenix Petroleum’s commercial paper issuance comes amid the company’s stance to expand its product and service offerings, which now include not just fuels but liquefied petroleum gas (LPG), convenience stores, payments and soon asphalt. — V.V.Saulon
