The Securities and Exchange Commission (SEC), sitting en banc, has approved the request of Phoenix Petroleum Philippines Inc. to raise P3.5 billion from short-term commercial papers (STCP).
“The company intends to use the proceeds from the offer for working capital purposes. Proceeds will be used to finance regular importation of fuels and lubricants by Phoenix.
The company will use the net proceeds from the offer within the first quarter of 2016,” according to the independent oil firm.
The company will allot the entire P3.476 billion net proceeds to buy and import petroleum products in January (P855.9 million), February (P2.01 billion) and March (P610.36 million).
Phoenix Petroleum has been accumulating funds for its expansion programs. It just raised P2 billion from a follow-on share sale which was listed Friday on the Philippine Stock Exchange.
“I would like to congratulate Phoenix Petroleum Philippines Inc. on its follow-on offering. The proceeds of this fund raising activity will support Phoenix Petroleum in its aggressive expansion program that includes the construction of additional retail stations nationwide and storage facilities in Cebu and General Santos,” PSE Chairman Jose T. Pardo said in his welcome remarks during the listing ceremony.
Half of the net proceeds from the share sale will used to complete 61 retail stations in key cities in North and South Luzon, Visayas and Mindanao and storage facilities in Cebu and General Santos City.
The other half will be used to put up 80 retail stations in the same regions and for buying and importing petroleum products.