Phoenix Pet to raise P1.5 B via STCPs

MANILA, Philippines - Independent oil player Phoenix Petroleum Philippines Inc. has been cleared by the Securities and Exchange Commission to raise P1.5 billion through the issuance of short-term commercial papers (STCPs) to serve as the company’s working capital this quarter.

In an en banc, decision, the SEC approved Phoenix Petroleum’s issuance which has already been given an above average rating by local debt watcher Philippine Rating Services Corp.

“The STCPs may be issued in either lump sum or tranches on a when and as needed basis in consultation with the issuer upon approval by the SEC,” the listed oil player said.

Phoenix Petroleum said it intends to use the proceeds from the offer for working capital purposes, specifically to finance regular importation of fuels and lubricants.

“The company will use the net proceeds from the offer within the first quarter of 2015,” it said.

Multinational Investment Bancorp and AB Capital and Investment Corp. will serve as joint issue managers, lead arrangers and underwriters of the issuance.

Phoenix Petroleum in October last year already raised P2 billion from the issuance of STCPs. The generated amount was earmarked for working capital to fund future expansion.

As of end September last year, the oil firm had a total of 412 service stations nationwide, 135 of which were in Luzon, 56 in the Visayas and 221 in Mindanao.

The company has a market share of four percent as of the first half of 2014.