Phoenix Petroleum Philippines Inc. has secured approval from the Securities and Exchange Commission (SEC) to raise up to P1.5 billion from the issuance of short-term commercial paper (STCP) to fund its oil importations this year.
The SEC authorized Phoenix Petroleum’s STCP issue in an en banc session on Thursday.
“The company intends to use the [P1.49 billion net proceeds after offer-related fees and taxes] for working capital purposes. Proceeds will be used to finance regular importation of fuels and lubricants by Phoenix…within the first quarter of 2015,” Phoenix Petroleum said.
The latest fund-raising follows its previous P2-billion STCP issuance in October last year. Gross proceeds from the two debt issues amounting to P3.5 billion will be used for “working capital purposes,” the company said.
The notes will be issued in three tranches: Tranche A is due in three months after issuance, Tranche B is due on April 22 this year, and Tranche B will mature on October 22, 2015.
Multinational Investment Bancorporation and AB Capital & Investment Corp. were appointed as the joint issue managers, lead arrangers and underwriters.
Phoenix Petroleum recorded a 7-percent decline in its full year 2014 net income to P616 million from P665 million in 2013 as falling oil prices affected revenues, which dropped by 20 percent to P34.7 billion from P43.6 billion in 2013.