Dennis Uy’s Phoenix offering P10B in commercial papers

Phoenix Petroleum Philippines Inc. yesterday said the Securities and Exchange Commission (SEC) had given it the green light to issue up to P10 billion worth of commercial papers, the latest of the company’s various plans for raising funds amid rapid expansion of operations.

In a statement, Phoenix said pursuant to the registration of its commercial papers with the SEC, it would offer an initial tranche of P7 billion with a follow-up of P3 billion.

The oil firm has not provided further details.

Phoenix also announced earlier this month that its board had approved the subscription of 2 million preferred shares by private placement, at P1,000 apiece.

The P2 billion that will be raised, to be managed and underwritten by RCBC Capital Corp., is earmarked for capital expenses and working capital needs.

In November, Phoenix’s board also gave the go signal for the issuance of up to P5 billion of perpetual preferred shares to support its business expansion.

Phoenix, led by Davao businessman Dennis A. Uy, is engaged in the nationwide trading and marketing of refined petroleum products including lubricants and operation of oil depots and storage facilities, hauling and into-plane services.

Phoenix already has 558 stations nationwide and continues to build up its position in the commercial segment mainly in the marine and road transport sectors.

Over the past two years, its portfolio has expanded to liquefied petroleum gas business acquired from Malaysia’s Petronas group, convenience store retailing under the Family Mart brand and overseas and trading and supply through its Singapore operations.

Further, Phoenix is venturing into the asphalt business with PhilAsphalt Development Corp. and Thailand’s Tipco Asphalt.

Phoenix is also taking steps toward a possible liquefied natural gas business in the country with a Chinese partner, CNOOC Gas and Power Group Co. Ltd.