OIL refiner and retailer Petron Corp. is planning to raise P40 billion in new capital through bond issues for refinancing existing indebtedness and to fund working capital requirements.
The company has filed an application on Monday seeking the approval of the Securities and Exchange Commission (SEC) to raise the money over a three-year period through the issuance of bonds under the SEC’s shelf registration program.
The bonds are to be issued in tranches within a period of three years from the effective date of the registration statement (RS).
The first tranche, Petron said, would amount to P15 billion, but could go up to P20 billion if oversubscribed, and the bonds will be listed on the Philippine Dealing & Exchange Corp. (PDEX).
After listing-related fees and taxes, the company expects to gain P14.85 billion in net proceeds from the initial tranche. In case the net proceeds of the offer will not be sufficient, the balance, Petron said, would come from the company’s funds.
The company earlier said it planned to build an additional 250 service stations in the Philippines and Malaysia for 2016. To date, there are 2,800 Petron stations in these two countries.
It also plans to put up 12 service stations along the 88.85-kilometer Tarlac-Pangasinan-La Union Expressway, upgrade its Port Dickson refinery in Malaysia, and undertake a re-branding of Exxon Mobil stations also in Malaysia.
Petron’s upgraded Bataan refinery began full commercial operations in January this year. Upgraded at a cost of $2 billion, the 180,000 barrels-per-day refinery enables Petron to produce Euro-4 compliant gasoline and diesel products.
Petron saw its net income increase 55 percent to P5.28 billion in the first half of 2016 on higher sales volumes amid aggressive station expansion and improved cost efficiencies brought about by the refinery upgrade.
In the same six-month period, the company sold a total of 51.8 million barrels of fuel, which is 9 percent higher than the 47.4 million barrels sold in the same period last year.