Phoenix to raise P3.2B from commercial papers

PHOENIX Petroleum Philippines, Inc. said on Monday that the second series of its P10-billion commercial papers program (CP Series B) is to be issued at a discount to face value of 7% per annum.

The Davao City-based company said the net proceeds of the issuance, assuming the offer is fully subscribed, would be approximately P3,231,842,905. The aggregate principal amount of CP Series B is P3.5 billion.

Phoenix Petroleum, one of the companies that significantly expanded its business in recent years, said it would use the proceeds primarily to refinance existing short-term loans. The loans were used to finance working capital requirements for the regular importation of fuels and lubricants.

In March, the listed oil company disclosed that it had signed a memorandum of understanding (MoU) with Philippine National Oil Co. (PNOC), along with China’s CNOOC Gas and Power Group Co. Ltd. (CNOOC G&P), to jointly explore business opportunities in a liquefied natural gas (LNG) hub project.

Phoenix Petroleum had said the MoU was signed on Feb. 28 in the presence of Secretary Alfonso G. Cusi, who also chairs PNOC, at the Department of Energy office.

The MoU signing, which came after a series of engagement talks among the three parties, will allow them to explore and discuss business opportunities and cooperation in relation to the equity investment in Tanglawan Philippine LNG, Inc., the project entity for the LNG project.

On Monday, shares in Phoenix Petroleum slipped by 0.17% to close at P11.96 each.

Phoenix Petroleum earlier this month sought the consent of the holders of its P1.375-billion fixed rate notes to adopt certain amendments to the trust agreement between the company and China Banking Corp.

The proposed amendment seeks to provide the company with the flexibility to pursue and capture growth opportunities that will further strengthen its position as the country’s leading independent oil company, it previously said. — Victor V. Saulon