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Petron bares plan to issue $550-m securities this month to repay debt

Oil refiner Petron Corp. said Thursday it will issue $550-million in senior perpetual capital securities this month as part of its capital raising program.

Petron said in a disclosure to the stock exchange it was planning to issue the securities on April 19 with net proceeds estimated at $547.8 million.

The company plans to use the proceeds “for the repayment of indebtedness and for general corporate purposes.”

The securities will carry a rate of 5.95 percent per annum and will be issued in registered form in denominations of $200,000 and integral multiples of $1,000.

Petron said earlier its executive committee authorized the company to issue US dollar-denominated senior perpetual capital securities.

It said it also obtained approval in-principle obtained 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.

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 are joint lead managers and joint bookrunners.

BDO Capital & Investment Corp., China Bank Capital Corp. and PNB Capital and Investment Corp. are the domestic lead arranger.

Petron operates the only integrated oil refinery in the Philippines. It had an overall market share of 24 percent of the Philippine oil market in the first half of 2020 in terms of sales volume, based on company estimates using internal assumptions and calculations and industry data from the Department of Energy.

Petron is also a leading player in the Malaysian market.

Topics: Petron Corp. , senior perpetual capital securities
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