Phoenix to issue up to P3.5 billion commercial papers

MANILA, Philippines — Listed independent oil firm Phoenix Petroleum Philippines Inc. plans to issue up to P3.5 billion in commercial papers (CP) within the month to fund its importation program.

In a disclosure to the Philippine Stock Exchange yesterday, Phoenix Petroleum said it submitted a proposal to the Securities and Exchange Commission (SEC) to issue the fourth tranche of its P10 billion CP program.

Under the proposal, the fourth tranche – or CP Series D – would have an aggregate principal amount of up to P2 billion with an oversubscription option of up to P1.5 billion.

Phoenix Petroleum company vice president for external affairs Raymond Zorrilla said this latest issuance falls under the company’s ongoing, three-year CP 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,” he said.

“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,” Zorrilla said.

The final issue price on the discount rate is targeted on July 20, while the offer date is targeted to commence from July 21 to 23.

Phoenix Petroleum said the issuance has been tentatively scheduled on July 29.

Assuming a fixed discount rate of five percent per annum and the offer is fully subscribed, Phoenix Petroleum expects net proceeds to amount to P3.28 billion.

“The expected net proceeds of the offer are intended to be used to finance working capital requirements in relation to the regular importation of fuels and lubricants by the corporation,” it said.

The oil firm has tapped PNB Capital and Investment Corp. as the sole issue manager and arranger for the offer.

The company had used the CP program to refinance its existing short-term loans, which were used in financing regular importation of fuels and lubricants.