Phoenix aims to raise P5B via notes issue
MANILA, Philippines—Phoenix Petroleum Philippines Inc. targets to raise as much as P5 billion through the issuance of corporate notes.
It intends to use the amount to refinance existing debts and fund projects.
In a disclosure to the Philippine Stock Exchange, Phoenix Petroleum said its board of directors had approved the issuance of P3 billion to P5 billion worth of notes, which will mature in five and seven years.
The oil firm appointed BPI Capital Corp., The Hongkong and Shanghai Banking Corp., Development Bank of the Philippines and Land Bank of the Philippines as joint lead managers for the transaction.
Chinatrust (Philippines) Commercial Bank Corp. will serve as co-lead manager.
“The notes will be sold via private placement to no more than 19 qualified buyers,” it added.
Phoenix Petroleum had earmarked P1.5 billion for its 2011 capital expenditure program, hoping to expand its fuel supply operations and retail network across the country. It also hopes to finance the expansion of its depot facilities.
The P1.5 billion allocated for this year was much higher than the P500 million that Phoenix had programmed for 2010.
In the first quarter of 2011, Phoenix posted a 122-percent surge in sales to P6.1 billion, compared with the P2.75 billion it recorded in the same period last year. Sales volume almost doubled year on year.
As of end-March 2011, Phoenix Petroleum has 178 stations operating nationwide, from 161 gas stations as of end 2010. Of the 178 stations, 135 are in Mindanao, six in the Visayas, and 37 in Luzon.
Based on its first quarter performance, the company said it was confident it would hit its target of putting up 80 additional stations before the end of the year.—Amy R. Remo
