Phoenix Petroleum lists commercial papers

Phoenix received approval from the Securities and Exchange Commission last week to sell up to P3.5 billion worth of CPs.
Angel Rivero, file

MANILA, Philippines — Phoenix Petroleum has listed its P3.1-billion Series D commercial papers (CP) on the Philippine Dealing and Exchange Corp. (PDEx).

The offering, with a tenor of 332 days, has a five percent discount rate per annum.

Phoenix received approval from the Securities and Exchange Commission (SEC) last week to sell up to P3.5 billion worth of CPs.

The flagship oil firm of Davao-based businessman Dennis Uy said the CPs consist of an aggregate principal amount of P2 billion and an oversubscription option of P1.5 billion.

The company said earlier proceeds of the CP Series D would be used primarily to finance working capital requirements for the regular importation of fuels and lubricants.

The CP Series D is the fourth tranche of the oil firm’s P10-billion CP program until 2021.

The initial issuance of the P10-billion CP program was undertaken in December last year, amounting to P7 billion under Series A and B.

“We are grateful that against the backdrop of bounding uncertainties in the market, we have been able to successfully return to PDEx,”Phoenix president and chief operating officer Henry Albert Fadullon said.

“We believe that with the support of the finance and investment communities, Phoenix, along with the rest of the local businesses, will be able to help our country recover and get stronger coming out from this crisis” he said.

Phoenix’s CP Series D became the 24th listing on PDEx for 2020, bringing the year-to-date total of new listings to P295.03 billion and pushing the total level of tradable corporate debt instruments to P1.48 trillion issued by 55 companies.

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