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Phoenix to sell P3.5-B debt papers

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COURTESY OF PHOENIX PETROLEUM

PHOENIX Petroleum Philippines, Inc. is set to offer up to P3.5 billion of commercial papers under a new debt financing program.

The independent fuel retailer told the stock exchange on Monday that its board approved the registration of the new debt papers with an aggregate amount of P7 billion.

It will offer and list P2 billion in the first issue with an oversubscription option of up to P1.5 billion. The company has not specified where the proceeds of the upcoming notes issuance will be used.

Phoenix has yet to file an application for the new debt program and the issuance of its first series with the Securities and Exchange Commission (SEC) and the Philippine Dealing and Exchange Corp. (PDEx).

The latest debt program is separate from its similar program since 2018, according to Phoenix Vice-President for External Affairs Raymond T. Zorrilla.

Last week, the auction for the fourth tranche of its P10-billion commercial papers was postponed as the company failed to complete the necessary requirements for its listing and registration with the SEC and PDEx.

The said series, which is supposed to be offered from July 21 to 23, is worth as much as P3.5 billion. The 360-day promissory notes have a 5% annual discount rate and are expected to yield P3.28 billion in proceeds, which the company will use to procure imported fuels and lubricants.

Meanwhile, the company on July 30 also signed off an upcoming offer of up to P3.5 billion of short-dated securities. No further details on this plan were disclosed.

Shares in Phoenix were unchanged at P11.40 each on Monday. — Adam J. Ang





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