Phoenix Petroleum to issue P2.5B in notes

Phoenix Petroleum Philippines aims to raise as much as P2.5 billion through the issuance of five-year fixed rate notes within this month.

In a disclosure to the Philippine Stock Exchange, Phoenix Petroleum said its board had approved the issuance of the notes, which would be jointly arranged by Penta Capital Investments Corp. and China Banking Corp., which would also serve as paying agent.

In a text message, Phoenix Petroleum AVP for external affairs Raymond T. Zorrilla said proceeds from this issuance would be used to finance the company’s capital expenditure program. Portion will be used to refinance existing debts.

The oil company is embarking on its most aggressive retail network expansion program, which will pave the way for the opening of 100 additional stations. Under this program, the company is spending P500 million to put up 40 gas stations in Luzon, 20 in the Visayas and 40 more in Mindanao.

Phoenix Petroleum is targeting to have 500 stations in five years.  It is also planning to put up three more terminals in Iloilo, Bacolod and Cebu to support its growing retail network.—Amy R. Remo