Pilipinas Shell Petroleum Corporation said it has secured a Php6 billion medium-term loan to mainly to repay its earlier short-term loan.
In a disclosure to the Philippine Stock Exchange (PSE) on Monday, the country’s second largest oil firm said it got the five-year financing from the Bank of the Philippine Islands “[following] a competitive tender process and pursuant to the endorsement from the Related Party Transaction Committee and Board approval.”
“The loan will reduce SHLPH’s exposure to short-term volatilities in the market and maximize the low interest rate for its cash requirements,” the multinational oil giant said. SHLPH is Shell’s ticker symbol in the PSE.
Last week, Shell said it will pay the Bureau of Customs (BOC) Php3.49 billion in taxes on alkylate importations from 2014 to 2020, but will do so “under protest.” The BOC then ordered Shell to pay the first tranche of the said amount by December 27.