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Petron raises $550M in capital securities

Maria Romero

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Oil refiner Petron Corp. raised $550 million in senior perpetual capital securities as part of its capital raising program.

In a disclosure to the stock exchange, Petron said it has completed the issuance of undated unsubordinated capital securities.

The securities were listed with the Singapore Exchange Securities Trading Limited yesterday, 20 April.

The net proceeds of the transaction will be used “for the repayment of indebtedness and for general corporate purposes.”

In an earlier disclosure, Petron said the securities will carry a rate of 5.95 percent per annum and will be issued in registered form in denominations of $200,000 and integral multiples of $1,000.

The country’s sole crude oil refiner said its executive committee authorized the company to issue US dollar-denominated senior perpetual capital securities.

The Hongkong and Shanghai Banking Corp. Ltd. was the sole global coordinator for the planned issuance.

DBS Bank Ltd., HSBC, MUFG Securities Asia Ltd., SMBC Nikko Capital Markets Ltd., Standard Chartered Bank, and UBS AG Singapore Branch were the joint lead managers and joint bookrunners.

Last year, Petron recorded a P11.4 billion net loss, a huge jump from P2.3 billion net income booked a year ago due to the Covid-19 pandemic.

Petron operates the only integrated oil refinery in the Philippines.

According to industry data, the company had an overall market share of 24 percent of the Philippine oil market in the first half of 2020 in terms of sales volume.

 

 

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