Manila, Philippines – Listed oil giant Petron Corp. has raised P32 billion in fresh funds from the debt market after investors snapped up its latest bond issuance that topped a programmed P25-billion offer.
In a stock exchange filing on Monday, Petron said the total amount “represents nearly a 1.3% oversubscription,” or equivalent to P7 billion more than planned.
“Notably, Petron’s interest rates for the bonds were priced at the low end of the marketing range,” the disclosure read.
The five-year bonds pay a yield of 6.5945 percent per year and are due in 2030. The seven-year and 10-year debt papers, meanwhile, carry an interest rate of 6.9761 percent and 7.3896 percent per year, respectively.
The issuance is the final tranche of the company’s P50-billion shelf registration approved by the Securities and Exchange Commission.
The fixed rate bonds were listed on the Philippine Dealing and Exchange Corp. on Monday following the conclusion of a one-week offer period on June 30. PNB Capital and Investment Corp. was the sole issue manager.
“The strong response underscores not only the success of another fundraising initiative but also the confidence investors have in our long-term vision,” Petron President and CEO Ramon S. Ang said in a statement.
