Phoenix Petroleum Philippines Inc. yesterday issued P1.375-billion in short dated notes (SDN) through the Philippine Dealing & Exchange Corp. (PDEx) to augment the company’s credit line from banks.
Underwritten by China Bank Capital Corp., the 18-month notes mature on Sept. 23, 2019 and carries an interest rate of 4.625 percent.
In an enrollment ceremony held yesterday at the PDS Group offices in Makati City, Phoenix chief finance officer Joseph John L. Ong said the issuance was “another milestone transaction” for the oil firm, being its first ever SDN.
The notes “will complement the company’s traditional working capital facilities through the banking community, which are mostly used for financing the company’s imported refined fuel products,” Ong said.
“The SDN provide investors compelling returns in a market of interest volatility,” he said. “They are also expected to provide comparable if not cheaper financing from the public sector, and more importantly allows the company to lock in rates for the next 18 months.”
According to Cesar B. Crisol, PDEx chair and chief executive, the trading platform has recorded a total of P44.375 billion in new listings since the start of this year.
Phoenix’s pioneering SDN brings the outstanding listed securities volume at PDEx to a cumulative total of P836.9 billion —with 136 outstanding corporate issues from 46 companies.
“It is not surprising to see Phoenix, noted as one the fastest-growing and leading independent oil companies in the Philippines, execute a nimble shift to this form of fundraising from qualified investors,” Crisol said.
“As Phoenix grows accustomed to this cycle of financing from professional investors, we hope it can find equally viable applications of this type of instruments for its longer term project funding requirements,” he added.
Phoenix started in 2005 with five retail stations in Davao City. Its network has since grown to 530 retail stations nationwide as of the end of 2017.
Ong said Phoenix was expected to continue expansion at an average of 50 stations per year.