PETRON.COM

PETRON CORP. said it raised P32 billion from its latest bond offering, citing strong investor demand ahead of the securities’ listing on the Philippine Dealing and Exchange Corp.

“The strong response underscores not only the success of another fundraising initiative but also the confidence investors have in our long-term vision. 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,” Petron President and Chief Executive Officer Ramon S. Ang said in a statement on Monday.

Petron said the offering raised a total of P32 billion, consisting of a P25-billion base offer and an oversubscription of P7 billion. The bonds were priced at the low end of the marketing range, according to the company.

“The issuance marks the final tranche of the company’s P50-billion shelf registration approved by the Securities and Exchange Commission (SEC),” it said.

The bonds, which will mature in five to 10 years, carry annual interest rates ranging from 6.5945% to 7.3896%.

The offer period ran from June 24 to 30. Proceeds will be used to redeem the company’s Series D and E bonds and to fund general corporate purposes, among others.

Petron tapped PNB Capital and Investment Corp. as the sole issue manager. Meanwhile, the Bank of Commerce, BDO Capital & Investment Corp., China Bank Capital Corp., First Metro Investment Corp., Land Bank of the Philippines, and Philippine Commercial Capital, Inc. served as joint lead underwriters and joint bookrunners for the offer. BPI Capital Corp., Development Bank of the Philippines, RCBC Capital Corp., and Security Bank Capital Investment Corp. acted as selling agents.

Petron held the largest share of the oil market at 24.9% as of June 2024, according to data from the Department of Energy.

The company, which operates the country’s only remaining refinery in Bataan, also runs about 50 terminals in the region and has around 2,700 service stations where it sells gasoline and diesel. — Sheldeen Joy Talavera