Phoenix Petroleum to issue P10 billion STCPs

MANILA, Philippines — Listed independent oil firm Phoenix Petroleum Philippines Inc. is issuing P10 billion worth of short-term commercial papers (STCPs).

In a disclosure to the Philippine Stock Exchange yesterday, Phoenix Petroleum said the STCP issuance was approved by its board of directors.

“The company intends to publicly offer the initial series of the commercial papers, with an aggregate principal amount of up to P7 billion in 2018,” Phoenix Petroleum said.

The STCPs will be registered with the Securities and Exchange Commission and the Dealing & Exchange Corp.

Phoenix Petroleum tapped PNB Capital and Investment Corp. as the sole issue manager, lead underwriter and sole bookrunner for the P7 billion STCP issue.

For this year, the oil player plans to spend P5 billion to expand its traditional and new businesses.

Of the P5 billion, P2 billion to P4 billion will be used to cover the organic growth in stations, storage capacities, logistics assets and IT (information technology).

The company has programmed to open 50 retail stations annually but sees more new outlets this year.

Phoenix Petroleum opened 25 gas stations last year, bringing its retail network to 530.