Phoenix Petroleum Philippines, Inc. (PPPI), the nation’s fastest-growing and leading independent oil company, issued on August 5, 2019, P3.5 billion worth of Commercial Papers (CP) under Series B of its Securities and Exchange Commission (SEC)-registered three-year, P10 Billion Commercial Paper Program. Priced at a discount rate of 7.00%, the CP Series B shall be redeemed in 360 days. PNB Capital and Investment Corporation served as lead arranger and issue manager. The issuance shall support the short-term funding requirements of the company for its importation and sale of petroleum products, and follows the initial P7 billion issuance last December 27, 2018 under Series A and B.
“The issuance of the commercial papers is instrumental in supporting the more immediate demands of our petroleum business, which has displayed consistent and significant growth over the years, and also reflects the positive financial ratings of the company. As a home-grown institution with humble beginnings, this feat is a tremendous leap that will fuel more business milestones,” said Phoenix Petroleum Chief Operating Officer Henry Albert Fadullon.
PPPI’s P10 billion Commercial Paper Program was recently awarded Best Debt Deal for the Philippines by the 2019 Asian Banking and Finance Corporate and Investment Banking Awards. Recognized as a landmark transaction, it was the first to utilize the new Securities Regulation Code (SRC) IRR rule 126.96.36.199, which enables the company to reissue the commercial papers within the three-year registration validity provided the total outstanding issuance does not exceed the registered P10 billion amount at any given time. This structure provides issuers flexible source of financing for working capital requirements, and offers retail and institutional investors a fair return over a short period of time.
“Such recognition shows that a proper debt structure advised and packaged by a reputable institution like PNB Capital, and driven behind the growth story and track record of a dynamic company such as Phoenix Petroleum, not only raises investor confidence, but likewise has the strong support of the financial industry,” Ma. Concepcion de Claro, Chief Finance Officer and Treasurer of Phoenix Petroleum, shared during the issuing ceremonies. “The company has long valued the opportunity to work with financial partners such as PNB Capital and list on the PDEX as this provides a venue to promote and seek alternative means of investor support for Phoenix Petroleum to pursue its business strategies with confidence,” she added. Phoenix Petroleum was established in 2002 in Davao City, Philippines. It listed on the Philippine Stock Exchange in 2007 to capitalize on investor confidence, and has since expanded to over 615 retail stations around the country as of March 2019. It continues to strengthen its position in the retail and commercial petroleum business and has supporting interests in lubricants, LPG, asphalt, financial technology, and retail convenience stores. It also has trading offices in Singapore and has investments in LPG retail in Vietnam.