PETRON CORP. has completed the sale of the P20-billion second tranche of its peso-denominated fixed rate bonds last week, the listed oil refining and distribution company told the stock exchange on Tuesday.
The bond offering, which the company completed on Oct. 12, is the remaining portion of its P40-billion shelf registration with the Securities and Exchange Commission (SEC). The first tranche was offered about two years ago.
The second tranche was divided into P13.2 billion Series C bonds and P6.8 billion Series D bonds. They were listed and traded at the Philippine Dealing & Exchange Corp., for which a certificate of permit to offer securities for sale was issued by the SEC on Oct. 4, 2018.
Petron previously said BDO Capital & Investment Corp. and BPI Capital Corp. had been appointed as joint issue managers and, together with China Bank Capital Corp., as joint bookrunners and joint lead underwriters, including other banks that may be invited to join the group.
When the first tranche was offered in 2016, Petron said the proceeds would be used mainly to refinance existing debt and fund working capital requirements. That year, the company commissioned its $2-billion refinery upgrade, increasing its capability to produce more high-value fuels and petrochemicals.
The first issuance, which was Petron’s first listing at the bond exchange, was twice oversubscribed over the base offer and was priced at the tight end of the marketing range, the company had said.
On Tuesday, shares in the company slipped by 0.60% to close at P8.28 each.
Petron, the country’s largest oil refiner and marketer, earlier reported a 16% increase in its first-half net income to P9.5 billion from P8.2 billion a year ago as sales volumes in its Philippine and Malaysian operations were sustained while prices of petroleum products during the period had come out higher. — Victor V. Saulon

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