Phoenix Petroleum Philippines Inc. yesterday issued P7 billion worth of short-term commercial paper (STCP) for its working capital needs as the company follows through its expansion efforts.
The amount represents the first of two tranches totaling P10 billion of STCP registered at the Securities and Exchange Commission.
Half of the first tranche consisted of 180-day paper that carries a discount rate of 7.0937 percent while 350-day paper with discount rate of 7.4718 percent accounted for the other half.
PNB Capital and Investment Corp. was the sole issue manager, lead underwriter and sole bookrunner while Metropolitan Bank & Trust Co., Multinational Investment Bancorporation, Philippine Commercial Capital Inc., and Rizal Commercial Banking Corp. were the brokers.
“Since the start, we have recognized the role of financial markets as a dynamic source of funding for our initiatives,” De Claro said. “This STCP offering supplements the working capital requirements of the company and the fixed rate allows Phoenix to manage interest cost as we enter the new year where the environment where rising interest rates remains a constant fact,” said Phoenix chief finance officer Ma. Concepcion F. de Claro during the listing ceremony.
She said the offering also gave investors fair return for their funds over a short period of time.
“This undertaking is integral to the growth of the company as it provides an alternative market-driven source in raising funds for the expansion of our core and new businesses,” De Claro said.
“Since 2017, we have broadened our portfolio from fuels and lubricants to LPG (liquefied petroleum gas), trading and supply, convenience store retailing, asphalt, financial technology, and potentially LNG (liquefied natural gas), and expanded our footprint from the Philippines to Singapore.”—RONNEL W. DOMINGO