Phoenix Petroleum Philippines Inc. successfully listed on Wednesday P3 billion worth of short-term commercial paper with Philippine Dealing and Exchange Corp.
“As Phoenix Petroleum grows bigger in size and complexity, I am honored to be part of a team and an organization that continues to challenge themselves and learn. 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,” said Phoenix Petroleum chief financial officer Ma. Concepcion de Claro.
The commercial paper is the third series (CP Series C) of its Securities and Exchange Commission-registered three-year, P10 billion commercial paper program. PNB Capital and Investment Corp. acted as the sole issue manager, lead underwriter and book-runner.
Phoenix will use proceeds of the listed STCP to finance working capital requirements on the importation and sale of petroleum products.
Phoenix issued and listed the first of its CP series worth P7 billion in December of 2018 (CP Series A) under the P10-billion commercial paper program.
Phoenix followed it up with the Second Series (CP Series B) worth P3.5 billion in August.
Phoenix’s CP Program received the Best Debt Deal for the Philippines during the 2019 Asian Banking and Finance Corporate and Investment Banking Awards.
Phoenix is diversifying into the road transport business as part of an expansion program.
The board of Phoenix earlier approved the creation of a new wholly-owned subsidiary that will operate road transport business. It also cleared an investment of P57 million as initial capitalization
“The objective is to simplify operations. As road transport is a non-core activity, there are efficiencies that can be unlocked by possibly joining with established partners with proven track records and expertise. By having a potential partner, we can also minimize the exposure specially to HSSE (health, safe, security and environment,” risks,” said Phoenix senior vice president Raymond Zorrilla earlier.