Petron Corporation has successfully raised PHP 32 billion through the issuance of fixed-rate bonds listed on the Philippine Dealing and Exchange Corporation (PDEx) on July 7. The offering marks the final tranche of the company’s PHP 50-billion shelf registration previously approved by the Securities and Exchange Commission.

The issuance drew robust investor interest, achieving a 1.3x oversubscription from the PHP 25 billion base offer, adding PHP 7 billion in excess demand. The bonds were priced at the low end of the marketing range, signaling investor confidence.

“The strong response underscores not only the success of another fundraising initiative but also the confidence investors have in our long-term vision. We are grateful for this trust and remain deeply committed to leading the charge when it comes to ensuring energy security and delivering quality petroleum products across the country,” said Petron President and CEO Ramon S. Ang.

The bonds carry the following coupon rates:

• 6.5945% per annum for the 5-year bonds maturing in 2030
• 6.9761% for the 7-year bonds maturing in 2032
• 7.3896% for the 10-year bonds maturing in 2035

The offer period ran from June 24 to 30, 2025. Proceeds will be used to redeem Petron’s Series D and E bonds and support general corporate purposes.

Petron, which operates the country’s only remaining refinery in Limay, Bataan, maintains the widest network of service stations and terminals nationwide.

The offering was managed by PNB Capital and Investment Corporation as Sole Issue Manager. Joint Lead Underwriters and Joint Bookrunners included Bank of Commerce, BDO Capital & Investment Corporation, China Bank Capital Corporation, First Metro Investment Corporation, Land Bank of the Philippines, and Philippine Commercial Capital, Inc. BPI Capital Corporation, Development Bank of the Philippines, RCBC Capital Corporation, and Security Bank Capital Investment Corporation served as selling agents.

What are your thoughts on Petron’s funding strategy and the investor confidence it reflects? Join the discussion and share your insights on how this affects the energy finance landscape. 

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Photo credit: Petron.com