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Petron to issue US dollar-denominated securities

Oil refiner Petron Corp.  said Thursday it plans to issue US-dollar senior perpetual capital securities as part of capital raising program.

“Please be advised that, at the meeting of the executive committee of the board of directors of Petron Corp. held earlier today, the executive committee authorized the company to issue US dollar-denominated senior perpetual capital securities, under such terms and conditions as management may determine,” Petron said in a disclosure to the stock exchange.

The company did not disclose how much was planning to raise, but said in its preliminary offering circular that the net proceeds “will be applied by the company for the repayment of indebtedness and for general corporate purposes.”

Petron said it obtained an approval in-principle from the Singapore Exchange Securities Trading Limited for the listing and quotation of the securities.

The securities will be traded on the SGX-ST in a minimum board lot size of $200,000 for as long as the securities are listed on the SGX-ST.

The Hongkong and Shanghai Banking Corporation Ltd. is the sole global coordinator while DBS Bank Ltd., HSBC, MUFG Securities Asia Limited, SMBC Nikko Capital Markets Limited, Standard Chartered Bank and UBS AG Singapore Branch in their capacity are joint lead managers and joint bookrunners of the issuance.

The domestic lead arrangers are BDO Capital & Investment Corp., China Bank Capital Corp. and PNB Capital and Investment Corp.

Petron operates the only integrated oil refinery in the Philippines and is a leading oil marketing company.

It had an overall market share of 24 percent of the local oil market in the first half of 2020 in terms of sales volume.

Petron is also a leading player in the Malaysian market with more than 21 percent market share at the end of 2020.

The company has decided to proceed with the temporary shutdown of the Petron Bataan Refinery from Feb. 10 to conduct maintenance activities on key process units while demand is low.

Topics: Petron Corp. , Philippines , Malaysia , dollar securities , debt
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