The fund raising of Petron Corporation via the issuance of undated subordinated capital securities had been increased up to $750 million, the company has noted in its disclosure to the local bourse.
It apprised the Philippine Stock Exchange (PSE) that its cash injection was beefed up by $250 million from the original issue of $500 million.
The issue price was at 104.25% “plus an amount corresponding to accrued distributions”, the oil firm has noted.
The new issue of $250 million, according to Petron, will be consolidated with the initial $500 million “to form a single series” capital securities.
Deutsche Bank, HSBC, Standard Chartered Bank and UBS were tapped as bookrunners and lead managers.
The issue was 10 times oversubscribed. Funds bought 61 percent of the bonds, 10 percent went to banks, 27 to private banks and 2 percent to insurance companies, Thomson Reuters publication IFR reported.
Asian investors bought 87 percent and 13 percent went to Europe, IFR said.
The distribution payment dates will be February 6 and August 6 of each year, commencing on August 6, 2013.
While the securities are undated, the company has the option to redeem them on the “step-up date” which has been set on August 6, 2018.
Company officials have previously indicated that this round of cash-raising exercise will be mainly utilized for its continued refinery upgrade project which called for total investment of $2.0 billion.
The company also scheduled capital spending for its $500 million cogeneration facility that will primarily meet the electricity requirements of the existing capacity as well as the planned expansion for its refinery.
It is a two-phased power project development of 246 megawatts capacity with scheduled on-stream operations starting this year for the first unit; and the second unit by 2014.
Shoring up its retail portfolio similarly holds a significant share in the oil firm’s investment blueprint. Its network will have to be built up further from the 2,015 stations it logged as of end-December 2012.