Petron fully redeems 2018 perpetual securities

MANILA, Philippines — Oil giant Petron Corp. has fully redeemed its $477.53 million senior perpetual capital securities issued five years ago.

The full redemption of the company’s remaining outstanding senior perpetual capital securities issued in 2018 was made using the entire net proceeds from Petron’s recent offering and issuance of its Series 4 preferred shares.

“Following such redemption, distributions will cease to accrue as of the step up date and the redeemed securities will be cancelled and delisted from the Singapore Securities Trading Limited,” Petron said.

Petron raised P14 billion from the preferred shares which were publicly offered from June 15 to 27.

The initial base offer of P12.5 billion was oversubscribed by P1.5 billion.

Dividend rates per annum on the preferred shares are 6.7079 percent per annum for Series 4A, 6.7972 percent per annum for Series 4B, and 7.0861 per annum for Series 4C.

Petron earlier said the amount raised would be used by the company to redeem its senior perpetual capital securities issued in 2018.

The issuance was part of Petron’s 50 million Series 4 preferred shares shelf registration.

The company earlier said the remaining shelf listed shares, as may be adjusted in case of a partial or non-exercise of the oversubscription option in the first tranche, would be issued in future offer tranches within the shelf period.

Petron has a number of big projects in the pipeline, led by the construction of its own coco-methyl ester (CME) plant at its Bataan Refinery Complex.

The CME plant will allow the company to produce its own CME once completed.