PETRON Corp., headed by Ramon S. Ang, announced on Tuesday that it had concluded the issuance of $550 million in undated unsubordinated capital shares, which will be listed in Singapore.
Petron said it plans to list the shares on the Singapore Exchange Securities Trading Ltd. by April 20 in a filing to the local bourse.
The corporation intends to use the net proceeds from the issuance, which are estimated to be about $547.8 million after fees, to settle loans and for general corporate purposes, according to the company.
The news arrives less than a week after the firm issued its final selling circular, which stated that the perpetual capital shares would be issued in increments of $200,000 and in integral multiples of $1,000 in excess.
The original delivery rate is 5.95 percent a year, and the distribution rate increases at a rate of 2.50 percent per year. The problem price is set at one hundred percent.
The shares do not have a set redemption rate since they are permanent, according to Petron, the country’s largest oil company. These will not be registered under the Securities Act and will not be issued or sold in the United States, according to the company.
“The Securities can only be issued in accordance with relevant laws and regulations in other countries (including the United Kingdom, Singapore, Hong Kong, Japan, and the Philippines),” the corporation said.
The trustee, registrar, principal paying agent, computation agent, and conversion agent for the issuance was Hong Kong and Shanghai Banking Corp. Ltd.
The oil refining and marketing group also detailed its estimated combined capital expenditure (capex) programs for 2021, which total P11.05 billion or $230 million, in its final bid circular.
The funds will be used to finance existing capex ventures, according to the agency, and will be collected by a mix of internal cash production and foreign funding channels. The proposed capital expenditures are focused on management projections which have not been evaluated by a third party.
The budget could adjust “as programs are checked or contracts are entered into, which are subject to different factors,” according to the report.
Business dynamics, the general state of the Philippine and Malaysian economies, the company’s financial success and cash flow, and its ability to secure funding on terms acceptable to management are among these considerations, according to the company.
Petron identified itself as a market leader in Malaysia, having joined the international market in 2012 by purchasing ExxonMobil’s downstream oil business in the Asian region.
Petron owns and runs the Philippines’ only oil refinery, which was placed on a temporary economic shutdown earlier this year to cut losses due to low margins.
Previously, the firm posted a net loss of P11.4 billion in 2020, down from a net profit of P2.3 billion the year before when revenue fell owing to the global health crisis.