PHOENIX Petroleum Philippines, Inc. is issuing P3 billion in commercial papers (CP) at a discount to face value of 4.6657% per annum.

In a disclosure dated Nov. 29 and posted on Monday, Phoenix Petroleum said the Series C of its commercial paper program will have a tenor of 360 days from the issue date of Dec. 11. The offer period started on Monday and will end at 5 p.m. on Dec. 5.

The company aims to raise approximately P2.82 billion from the offering.

Phoenix Petroleum said it will use the net proceeds from the offer “to refinance existing short-term loans, which were used to finance working capital requirements in relation to the regulation importation of fuels and lubricants.”

PNB Capital and Investment Corp. is the sole issue manager, underwriter and arranger.

The Philippine Rating Services Corp. assigned a PRS As minus rating on Phoenix Petroleum’s commercial papers.

This is the third series of commercial papers under the P10-billion commercial papers program registered with the securities regulator.

Phoenix Petroleum reported an attributable net income of P931.53 million in the first nine months of 2019, 41% lower than a year ago. Revenues rose 13% to P73.17 billion, but increased costs from higher fuel premiums weighed on volume and margins. — VVS