Petron upbeat on growth after P32 billion bond list

MANILA, Philippines — Petron Corp., the country’s only oil refiner, is confident in its growth prospects following the listing of its P32-billion bond offer, highlighting strong investor confidence.

“The strong response underscores not only the success of another fundraising initiative but also the confidence investors have in our long-term vision,” Petron president and CEO Ramon Ang said.

The company listed its fixed-rate retail bonds on the Philippine Dealing and Exchange Corp. early this week, raising P32 billion from an oversubscribed offer.

The bonds, consisting of a base offer of P25 billion and an oversubscription of P7 billion, were offered from June 24 to 30.

Proceeds from the issuance will be used to repay maturing financial obligations, settle short-term loans and existing debt and support general corporate purposes.

“We are grateful for this trust and remain deeply committed to leading the charge when it comes to ensuring energy security and delivering quality petroleum products across the country,” Ang said.

Petron’s offer comprises Series G, Series H and Series I bonds with annual interest rates of 6.5945 percent due 2030, 6.9761 percent due 2032 and 7.3896 percent due 2035, respectively.

Notably, the bonds’ interest rates were priced at the low end of the marketing range, Petron said.

“The company is a trusted issuer in the local debt capital market given its healthy financial position and a track record of meeting its bond obligations,” China Bank Capital Corp. managing director Juan Paolo Colet told The STAR.

China Bank Capital, together with Bank of Commerce, BDO Capital & Investment Corp., First Metro Investment Corp., PNB Capital and Investment Corp., Land Bank of the Philippines and PCCI Capital, served as joint lead underwriters and joint bookrunners.

PNB Capital, meanwhile, acted as the offer’s sole issue manager.