Petron Corporation, the country’s largest oil firm, has completed the sale of its fixed-bond rates worth Php18 billion partly to finance its new power plant inside its refinery in Limay, Bataan.
In separate disclosures to the Philippine Stock Exchange on Monday and Tuesday, Petron said it sold Php9 billion in Series E Bonds maturing in 2025 with an interest rate of 3.4408% per annum and another Php9 billion due in 2027 with an interest rate of 4.3368% per annum.
The bonds, which are to be listed with the Philippine Dealing and Exchange Corporation (PDEX) on Tuesday, were issued out of the company’s Php50 billion shelf registration earlier listed with the PDEX. This is the oil giant’s third PDEx listing, which was nearly thrice oversubscribed over the Php18 billion base offer.
Back in July, Petron said it will be building a 44-megawatt (MW) power plant to expand the existing plant’s power generating capacity to 184MW from 140MW. The oil firm expects the new facility to be completed and operational in the second half of 2022 after testing, synchronization, and pre-commissioning activities.
Aside from the new Bataan refinery plant, proceeds from the fundraising will be used primarily for the redemption of the company’s outstanding Series A Bonds due in October this year and for payment of existing debts.
“We’re particularly proud of the reception from our retail investors, signifying their confidence in Petron and our future as a company. Despite some of the challenges we still face, we continue to pursue our strategic goals, and ensure that we deliver long-term growth for the company,” Petron President and CEO Ramon Ang said in a statement on Tuesday.