PHOENIX Petroleum Philippines Inc. is raising up to P3.5 billion from the last tranche of its P10-billion commercial paper program to finance the oil company’s working capital requirements.
“The corporation intends to offer to the public the fourth series of the commercial paper program with an aggregate principal amount of up to P2 billion with an oversubscription option of up to P1.5 billion,” Phoenix said on Wednesday.
The debt paper will have a tenor of 360 days from issuance, tentatively scheduled on July 29. If fully subscribed at the 5-percent rate, Phoenix said it expects net proceeds to reach P3,280,015,570. The proceeds would be used to finance the importation of fuels and lubricants, among others.
The oil company expects to set the final issue price on the discount rate on July 20.
The oil firm has hired PNB Capital and Investment Corp. as arranger for the offer.
The issuance falls under Phoenix Petroleum’s ongoing, three-year commercial paper program that was launched in 2018.
“It continues to provide a channel for the company to tap market participants looking for competitive yields and to support the working capital requirements.
“The issuance is part of the drive to help jumpstart economic activities in our country today as Phoenix continues to ramp up operations and support its nationwide network of over 660 stations and commercial clients,” Phoenix Senior Vice President for External Affairs Raymond Zorilla said.
In August and December last year, Phoenix raised P3.5 billion and P3 billion worth of commercial papers, respectively.