Phoenix lists P3 billion worth of STCP

MANILA, Philippines — Listed independent oil firm Phoenix Petroleum Philippines Inc. has listed its P3-billion worth of short term commercial papers (STCP) at the Philippine Dealing and Exchange Corp. (PDEx).

The company said proceeds of the listed STCP would be used to finance working capital requirements for its importation and sale of petroleum products.

“More than a fund raising activity, for us, the STCP program is a simple, ingenious approach in meeting working capital requirements in an efficient, cost effective way,” Phoenix Petroleum CFO Ma. Concepcion de Claro said.

Earlier, Phoenix Petroleum said it would use the net proceeds to refinance its existing short-term loans, which were used in financing regular importation of fuels and lubricants.

Corporate investors covered 66.38 percent of the P3 billon offering at P1.99 billion, while individual investors cornered 33.62 percent amounting to P1.01 billon.

The firm said the offering, called CP Series C,has a tenor of 360 days from the issue date of Dec. 11 and had a fixed discount rate of 4.6657 percent per annum.

The commercial papers is the third series of its Securities and Exchange Commission-registered three-year P10-billion commercial paper program with PNB Capital and Investment Corp. as the sole issue manager, lead underwriter, and bookrunner.

Phoenix Petroleum issued and listed the first of its series in December 2018 for the aggregate amount of P7 billion under the P10 billion STCP.

This was followed by the Second Series (CP Series B) worth the aggregate amount of P3.5 billion in August of this year.