Petron Corp. said Monday it raised P18 billion from the issuance of peso fixed-rate bonds that it use to redeem the company’s Series A bonds, partially finance a power plant project and repay debt.
Petron said in a disclosure to the stock exchange it completed the offering period from Sept. 27 to Oct. 5.
Petron raised P9 billion from the Series E bonds due 2025 and another P9 billion Series F bonds due 2027, which were issued out of the P50-billion self-registration of the company.
The bonds will be listed and traded at Philippine Dealing & Exchange Corp. on Oct. 12.
“The company estimates that the net proceeds from the offer shall amount to approximately P17.783 billion, after fees, commissions and expenses,” Petron said in a previous disclosure.
Petron plans to use proceeds from the bonds to redeem Series A bonds worth P13 billion issued on Oct. 27, 2016 with a fixed interest rate of 4.0032 percent per annum for a term of five years maturing on Oct. 27.
A part of the proceeds will also be used to finance the construction of a power plant amounting to P3.3 billion.
The project involves construction of a power plant in its 180,000-barrel-per-day refinery in Limay, Bataan to increase the capacity of the power project from to 184 megawatts from 140 MW.
The power plant is designed to generate power and steam required by the refinery, utilizing cheaper feedstock (petcoke) in lieu of more expensive fuel oil. Construction is expected to be completed in the second half of 2022.
Petron will also use part of the proceeds to pay existing indebtedness, specifically amortizations of various peso bilateral long-term facilities worth P1.483 billion in the fourth quarter.
BDO Capital & Investment Corp. acted as sole issue manager for the offer while BDO Capital, China Bank Capital Corp., Philippine Commercial Capital Inc., PNB Capital and Investment Corp. and SB Capital Investment Corp. were the joint lead bookrunners and joint lead underwriters.
Petron operates the only integrated oil refinery in the Philippines. The company had an overall market share of 22.1 percent of the Philippine oil market in 2020. It is also a leading oil player in Malaysia.