Phoenix Petroleum Philippines, an independent oil firm, listed its short term commercial papers (STCP) with the Philippine Dealing and Exchange Corp (PDEx).
This is worth P3 billion.
According to the company, proceeds of these listed papers would be used to boost its capacity to finance working capital requirements.
As reported by the Phil Star, the company thinks that doing this would also boost the company’s importation and sale of petroleum products.
The STCP program is not meant to be a fundraising activity alone.
Pheonix Petroleum CFO, Ma. Conception de Claro clarified that the STCP program is a simple way for the company to meet its working capital requirements cost-efficiently.
Earlier too, the company asserted that net proceeds would go to refinancing already existing short-term loans.
Phoenix Petroleum used these loans in the past to finance regular importation of its core products, fuels as well as lubricants.
Corporate investors were able to cover around 66.38 percent of the P3 billion offering.
This totaled P1.99 billion.
On the other hand, individual investors covered the remaining 33.62 percent.
This totaled P1.01 billion.
According to the company, the said offering, named the CP Series C, has 360 days from the issue of date of December 11 before it expires.
It comes with a fixed discount rate of 4.6657 percent per annum.
This is also the company’s third series of Securities and Exchange Commission-registered three-year P10-billion commercial paper program.
PNB Capital and Investment Corp acted as its sole issue manager, lead underwriter, and bookrunner.
The company issued and listed the first of the series two years ago on December 2018.
The aggregate amount totaled P7 billion under the P10 billion STCP.
The second one, CP Series B took place in August 2019.
It reached a total amount of P3.5 billion.
Stock Signals Philippines is your go-to website for stock analysis, tips and strategies in trading and investing in the Philippine stock market. StockSignals.ph is a property of Equilyst Analytics, Inc.