Phoenix Pet completes P2.5-billion capital raising

MANILA, Philippines - Davao-based oil firm Phoenix Petroleum Philippines Inc. has completed its P2.5-billion capital raising through corporate notes.

In a disclosure, Phoenix Petroleum said it signed a deal with institutional lenders for the P2.5-billion fixed rate corporate notes that will mature in five years.

“We have already drawn the P2.5 billion from the banks last Monday,” Raymond Zorilla, assistant vice-president for external affairs of Phoenix Petroleum, said in a phone interview.

Phoenix Petroleum said the fund will be used to expand its retail station network and refinance short-term debts.

“The P2.5-billion corporate note facility we arranged for Phoenix will help them change the landscape of the local oil industry,” said PentaCapital treasurer Jose Ma de Leon.

“Phoenix would now be in a position to compete with major oil players and thus provide us consumers with more choices,” de Leon added.

The fundraising is the largest note offering of Phoenix Petroleum to date, said company president and CEO Dennis Uy.

“The continued confidence of the institutional investors in Phoenix Petroleum is evidenced by the very positive response to this offering,” said China Bank Investment Banking Group first vice-president Virgilio Chua.

Last week, the company’s board of directors approved the issuance of the fixed rate notes.

It hired PentaCapital and China Banking as joint arrangers for the corporate notes.

The group of institutional lenders was composed of China Banking Corp., Chinabank Savings Inc., China Banking Corp. Trust Group., BDO Private Bank Inc.-Wealth Advisory and Trust Group, Philippine Business Bank, PentaCapital Investment Corp., Robinsons Banking Corp., Pioneer Life Inc. and the BSP Provident Fund.

Phoenix Petroleum plans to double its service stations to at least 500 in the next five years through a nationwide expansion program.

The new retail stations will allow the company to maintain its position as the top independent oil firm in the country.

In July, Phoenix Petroleum and BDO signed the deal for the convertible debt with warrants, with BDO Capital as the sole arranger.