Petron Corp., the Philippines’ largest oil company and sole refiner, announced Tuesday that its board has approved a plan to raise up to P32 billion this year through the public offer of peso-denominated retail bonds.
The base offer will amount to P25 billion, with an allotment of P7 billion to cover oversubscription. This offering will be drawn from the P50 billion bond shelf registration Petron has with the Securities and Exchange Commission (SEC), which is set to expire in September.
In 2021, Petron successfully raised P18 billion from the issuance of fixed-rate peso-denominated bonds, with half maturing in 2025. The proceeds from that bond issuance were used to redeem maturing debt and fund a power project.
In addition to the bond issuance, the oil company, a subsidiary of San Miguel Corp., has approved a share buyback plan involving 620 million shares. Of these, 459.2 million shares are held by the Petron Corp. Employees’ Retirement Plan, while the remaining 167 million shares will be repurchased from the market for a total of P400 million.
Meanwhile, Petron will utilize dividends from its foreign operations as working capital to support its ongoing business activities. The company’s strategy underscores its commitment to strengthening its financial position while optimizing shareholder value.
This dual approach of raising capital and repurchasing shares reflects Petron’s broader strategy to maintain financial flexibility and support its growth objectives.
