PHOENIX Petroleum Philippines, Inc. has raised P3.5 billion from the bond market for its short-term funding requirements, allowing it to support immediate business demands, the Davao City-based oil company said on Tuesday.

“The issuance of the commercial papers is instrumental in supporting the more immediate demands of our petroleum business, which has displayed consistent and significant growth over the years, and also reflects the positive financial ratings of the company,” said Henry Albert R. Fadullon, Phoenix Petroleum chief operating officer, in a statement.

The fast-growing independent oil firm issued the commercial papers on Aug. 5 under its P10-billion commercial paper program registered with the Securities and Exchange Commission.

Phoenix Petroleum’s Series B commercial paper was priced at a discount rate of 7%. It can be redeemed in 360 days. PNB Capital and Investment Corp. was the lead arranger and issue manager.

The company said the proceeds of the securities would support its short-term funding requirements for its importation and sale of petroleum products. The issuance comes after the initial P7-billion issuance on Dec. 27, 2018 under Series A and B.

Phoenix said the issuance had been recognized as a “landmark transaction” as it was the first to use the new Securities Regulation Code implementing rules and regulation’s rule The rule allows the re-issuance of the commercial papers within the three-year registration validity provided the total outstanding issuance does not exceed the registered P10-billion amount at any given time.

Phoenix Petroleum said the structure provides issuers flexible source of financing for working capital requirements, and offers retail and institutional investors a fair return over a short period of time.

Ma. Concepcion F. de Claro, its chief finance officer and treasurer, said the recognition on the issuance “shows that a proper debt structure advised and packaged by a reputable institution like PNB Capital, and driven behind the growth story and track record of a dynamic company such as Phoenix Petroleum, not only raises investor confidence, but likewise has the strong support of the financial industry.”

On Tuesday, shares in Phoenix Petroleum closed lower by 0.17% at P11.94 each. — Victor V. Saulon