Petron raises P32B from bond sale

Petron Corp., the country’s only oil refinery backed by billionaire Ramon Ang, has raised fresh funds after it completed the sale of P32 billion worth of fixed-rate bonds.

Concluded last June 30, the major oil firm saw strong traction from investors as the bond issuance was oversubscribed by P7 billion on top of the P25-billion base offer.

Petron said in a disclosure Wednesday that these would be issued from its P50-billion fixed-rate bonds shelf registration.

The bonds will be listed on the Philippine Dealing and Exchange Corp.

The new funds would be used to settle existing debt, including short-term loans, and to finance general corporate purposes.

The listed company tapped PNB Capital and Investment Corp. to be the sole issue manager.

Bank of Commerce, BDO Capital & Investment Corp., China Bank Capital Corp., First Metro Investment Corp., PNB Capital, Land Bank of the Philippines and PCCI Capital, meanwhile, served as joint lead underwriters and joint bookrunners.

Last 2021, Petron also secured about P18 billion from the first tranche of the shelf registration.

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Petron supplies about 40 percent of the total fuel requirements nationwide through its refinery in Bataan that can produce 180,000 barrels of oil per day.

The company posted a slight improvement in its net income in the first quarter, reaching P4.03 billion. Revenues, however, declined by 14.6 percent to P194.38 billion against the P227.64 billion generated a year ago due to lower prices and limited trading volumes.

Ang, its president and chief executive officer, said earlier that Petron “continue[s] to operate in a volatile and unpredictable market,” amid the controversial tariff policies of US President Donald Trump, coupled with persistent geopolitical tensions.