Listed Phoenix Petroleum Philippines received approval from the Securities and Exchange Commission to issue P3.5 billion worth of short-term commercial papers.
Phoenix Petroleum, one of the more aggressive small oil companies, disclosed the approval to the Philippine Stock Exchange to sell up to P3.5 billion worth of SCTP.
Phoenix Petroleum vice president for external affairs Raymond Zorrilla said the company would reissue P2 billion in the third week of January, while the balance of P1.5 billion would replace the outstanding P1.255 billion maturing in February 22, 2016.
“Please note that we paid, retired P2 billion of the total P3.5 billion SCTP that matured in October 2015,” Zorilla said when asked for comment.
Phoenix Petroleum, meanwhile, successfully listed its perpetual preferred shares series 3 on the PSE early this month, raising P2 billion to fund the company’s expansion plans.
Phoenix Petroleum said the 20 million perpetual preferred shares were the company’s biggest equity public offering to date. The issuance was at least three times oversubscribed.
The preferred shares are priced at P100 per share and issued in two sub-series—PNX3A with a dividend rate of 7.4278 percent per annum and PNX3 B with a dividend rate of 8.1078 percent a year.
PentaCapital Investment Corp., Multinational Investment Bancorporation and AB Capital and Investment Corp. were the underwriters of the STCP.
“We have supported Phoenix Petroleum through the years, having underwritten their first and second perpetual preferred share through the years, having underwritten their first and second perpetual preferred share issue in 2010 and 2013 and are proud to assist them in this latest and largest undertaking,” PentaCapital Investment executive vice president and chief finance officer Jose Ma. De Leon said.
Multinational chairman and president Marilou Cristobal said “the preferred shares will fund key expansion projects of the company that will help maintain their position as the top independent oil player.”
The company plans to put up more retail stations and depots across the country to expand its network.
Phoenix Petroleum currently has a market share of around 7 percent. It started as a small enterprise in Davao City with only five stations and a few commercial accounts, and has grown to 450 outlets and served several industrial accounts across the country.
