Petron Corporation is looking to refinance it’s $750 million securities on the stock exchange of Hong Kong Limited.
The company disclosed on Wednesday that its executive committee cleared the company to seek permission from the $750 million securities holders to amend the Trust Deed dated February 6, 2013, to issue new undated capital securities.
Petron said that it wants to use newly updated capital securities to repurchase, refinance, and/or redeem the 2013 securities.
“The new securities are expected to be senior to the 2013 securities until such 2013 securities are repurchased, refinanced and/or redeemed,” it said.
In order to achieve, Petron is seeking the proposed amendments by way of the consent solicitation to confirm its ability to issue the new securities.
In 2013, Petron raised around $750 million from the issuance of perpetual bonds which was used to finance its Refinery Master Plan 2 (RMP-2). This allowed Petron to raise its production to 180,000 barrels a day.
This also allowed the company to kick-start the local production of Euro-IV compliant fuel products – offering a full range of premium fuels to the market compliant with the global standards.
Petron is also eyeing to upgrade its existing refinery, expand its Malaysian refinery and establish more refineries in the Philippines.
Petron president and CEO Ramon Ang said before that upgrading its Bataan refinery would mean an investment of $500 million in the next two years.
The upgrade will begin in the next few months and will take around two years to complete. This will allow the company to raise its capacity from 180,000 barrels a day to 260,000.