Petron targets bond listing on October 21

MANILA, Philippines – Oil refiner Petron Corp. is targeting to list its planned P15 billion bonds on Oct. 21.

In a briefing yesterday, Petron officials said the offer period was tentatively set on Oct. 10 to 14 while the interest rate setting was set on Oct. 6.

The P15 billion represents the first tranche of Petron’s P40 billion fixed-rate bonds.

The company earlier filed an application with the Securities and Exchange Commission (SEC) for a shelf registration of the P40 billion bonds.

Part of the proceeds will be used for refinancing purposes, Petron said.

“The net proceeds of the offer shall be used primarily to refinance existing indebtedness and fund working capital requirements. In the case the net proceeds of the offer will not be sufficient, the balance will be financed from the company’s funds,” Petron said.

The company tapped SB Capital, BDO Capital & Investment Corp. and BPI Capital Corp. as underwriters for the bond issue.

The shelf registration is provided for under the Securities Regulation Code wherein issuers have the option to register and sell issues under the same regulatory documents securities, which they do not intend to sell right away.

As such, securities to be issued in tranches may be registered for an offering to be made on a continuous or delayed basis for a period not exceeding three years.

The SEC said there has been strong availment of the shelf registration option among companies.

Data from the SEC showed that private companies registered with the SEC a total of P137 billion in fixed rate and deferred coupon paying bonds  from January to July this year.