IFC mulls $57-million fund assistance to Phoenix

MANILA, Philippines - The International Finance Corp., the private sector investment arm of the World Bank group, is planning to provide $57 million financial assistance to Phoenix Petroleum Philippines Inc.

Of the $57 million, about $10 million will be allocated for Phoenix’s expansion program particularly the increase in the retail service station networks of the oil firm.

Specifically, IFC said its financing will fund the company’s corporate investment program expand its retail service station network, and acquire land and build tanks and depots in strategic locations.

Phoenix is engaged in the business of wholesale and retail trading of refined petroleum products, lubricants and other chemical products, and the operation of oil depots and storage facilities mainly in southern Philippines.

Established in 2002, Phoenix has been growing rapidly, with its network of 161 retail stations at the end of December 2010. The number is expected to expand to over 220 by the end of 2011.

Since becoming involved in the downstream oil business in November 2005, Phoenix has made successful inroads in Mindanao.

The company is also involved in plane services, such as hauling of Jet A1 fuels to airports and refueling of aircraft in Davao as well as other airports in Mindanao.

Phoenix is managed by Dennis Uy, president and CEO, and his father, Domingo Uy, chairman. Between them, they effectively own 71 percent of the company through their companies, Phoenix Petroleum Holdings Inc., and Udenna Corp.

Phoenix has five existing fuel storage terminals and two more terminals are under construction.

Phoenix is the first Davao-based petroleum company (and only the second one nationally) to be listed on the Philippine Stock Exchange.

Currently, the company owns five fuel storage terminals and another two terminals are under construction.

The company also owns a small lubricants blending facility near Manila.