Independent oil player Phoenix Petroleum Philippines Inc. plans to raise another P1.5 billion from the issuance of more short-term commercial paper (STCP) to fund its capital working requirements.
In a disclosure to the Philippine Stock Exchange Wednesday, Phoenix Petroleum explained that the decision to issue additional STCPs was in response to the oversubscription of the same debt notes issued last month, which were worth P2 billion.
The current issuance, which was approved Wednesday by the company’s board of directors, will be jointly arranged by Multinational Investment Bancorporation (MIB) and AB Capital and Investment Corp. The STCPs will then be registered with the Securities and Exchange Commission and listed with the Philippine Dealing and Exchange Corp. (PDEx) under the PDS Group.
Phoenix Petroleum VP for external affairs Raymond Zorilla said in a text message that the proceeds would be used to expand depots and retail network, as well as complement existing bank lines.
As of end-September this year, Phoenix Petroleum has 412 retail gas stations across the country. Zorilla, however, declined to disclose the company’s expansion plans for next year as Phoenix Petroleum is still firming up its budget.
PDex said in an earlier statement that the STCP Program was meant to expand the list of tradable asset classes to cater to issuers of short-term debt.