Maharlika signs P15-billion credit deal with Petron to boost fuel security

The Maharlika Investment Corp. (MIC) said Friday it signed an agreement with Petron Corp. for a short-term revolving credit facility of up to P15 billion to strengthen the country’s fuel security and support national development.

Under the agreement, the sovereign wealth fund will provide financing that Petron can use solely to purchase or import crude oil, refined petroleum products and related working capital requirements.

The facility, offered at prevailing interest rates, complements Petron’s existing funding arrangements and provides flexibility in managing fuel procurement and expanding its crude oil inventory.

As the sole oil refiner and a major fuel supplier in the Philippines, Petron maintains the stable flow of petroleum products to households, motorists, businesses, and other key economic sectors.

The transaction aligns with the mandate of the Maharlika Investment Corp. to promote national development through strategic investments in key sectors, allowing it to support a critical part of the energy supply chain while generating risk-adjusted returns.

“The price of oil has risen to the point where distribution companies must double their working capital just to buy the same amount of fuel,” Maharlika Investment Corp. president and chief executive Rafael Consing Jr. said.

“This facility allows MIC to support fuel supply stability while deploying capital in a sector that is essential to the economy,” said Consing.