Phoenix to offer $300M in perpetual bonds

Phoenix Petroleum Philippines Inc. plans to issue up to $300 million of perpetual bonds to refinance its working capital and for other purposes.

In a statement yesterday, the Dennis Uy-led firm said the dollar-denominated bonds would be listed on the Singapore Exchange.

Phoenix has appointed ANZ Banking Group as sole global coordinator as well as joint lead manager and joint bookrunner alongside ING NV Bank, UBS Group. The oil firm said the banks were mandated to arrange a series of meetings with fixed-income investors in Manila, Hong Kong and Singapore starting March 1.

“The securities, if issued, are expected to be unrated,” Phoenix said.

This latest plan for an issuance follows last January’s announcement it would push ahead with an offering of P5 billion worth of perpetual preferred shares as the company firms up its position after a spate of acquisitions.

Last December, the oil firm had issued P7 billion worth of short-term commercial papers (STCP), also for its working capital needs. That amount represented the first of two tranches totaling P10 billion of STCP registered at the Securities and Exchange Commission.

Phoenix has expanded its portfolio to include the liquefied petroleum gas business acquired from Malaysia’s Petronas group and convenience store retailing under the Family Mart brand.