PHOTO FROM PHOENIXPHILIPPINES.COM
THE SECURITIES and Exchange Commission has approved a plan by fuel distributor Phoenix Petroleum Philippines Inc. to raise as much as P1.5 billion from an offering of short-term commercial paper (STCP).
The STCP offering will be arranged by Multinational Investment Bancorporation and AB Capital & Investment Corp., based on a document released by the Securities and Exchange Commission on Friday.
The STCPs may be issued in either lump sum or tranches on a when and as-needed basis in consultation with the issuer, the document said.
The securities are intended to be listed on the Philippine Dealing & Exchange Corp. (PDEx) for secondary trading.
Based on the SEC documents, Phoenix intends to use proceeds from the offer for working capital, such as to finance regular importation of fuel and lubricants.
For the first two tranches, the STCPs will be offered at a minimum of P5 million and increments of P100,000. For the third tranche, it will be offered at P100,000 in face value and increments of P10,000.
The securities will be issued at discount to face value.
The SCTPs will be issued in scripless form and maintained in electronic form.
Phoenix is registered with the Board of Investment in 2010 and 2012 as a new industry participant with new investment in storage, marketing and distribution of products under the Downstream Oil Industry Deregulation Act (Republic Act 8479). It is entitled to certain tax and non-tax incentives.
The company has a market capitalization of about P5.7 billion at the Philippine Stock Exchange.