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Friday, March 29, 2024

Petron obtains nod to sell P20 billion worth of bonds

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The Securities and Exchange Commission approved the request of Petron Corp. to sell P20 billion in peso-denominated fixed rate bonds.

“We advise that the company received from the SEC the permit to offer securities for sale dated today for the offer and sale of the Series C Bonds and Series D Bonds of the company with an aggregate amount of P20 billion,” Petron disclosed Monday.

Petron plans to issue the bonds on Oct. 19 to pay outstanding short-term loans and for general corporate purposes.

Petron said it would use the net proceeds from the offer of approximately P19.77 billion, after fees, commissions, and expenses, to pay the outstanding short-term loans extended by the Bank of the Philippine Islands and BDO Unibank Inc.

“The offer bonds will be issued on October 19, 2018  and will comprise of fixed-rate bonds due in 2024 (Series C Bonds), and in 2025 (Series D Bonds),” it said.

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Petron said it had the discretion to allocate the principal amount between the Series C Bonds and the Series D Bonds based on the book building process. 

It said the Series C Bonds would have a term of five ears and six months from the issue date, with a fixed interest rate equivalent to 7.8183 percent per annum. The Series D Bonds will have a term of seven years from the issue date, with a fixed interest rate equivalent to 8.0551 percent a year.

The peso-denominated fixed rate bonds form part of an earlier shelf registration worth P40 billion approved on October 12, 2016.

The company appointed BDO Capital & Investment Corp and BPI Capital Corp. as joint issue managers, with China Banking Corp. as joint book runner and lead underwriter.

Petron, which owns the country’s biggest refinery in Bataan with a capacity of 180,000 barrels a day, earlier announced plans to invest in a catalytic reforming unit that will pave the way for the company to produce petrochemicals, such as mixed xylene, toluene, and xylene for sale to the export market.

Petron plans to complete the basic engineering design study on the unit this year and an investment decision by the first quarter next year. With AFP

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