Petron Corp., a subsidiary of conglomerate San Miguel Corp., is seeking to raise $500 million from the offshore bond market to pay down debt and partly fund a power plant project in its refinery in Limay, Bataan.
In a regulatory filing, Petron said it its board approved the issuance of up to $500 million worth of senior notes for repayment of indebtedness and construction of new power plant facilities to replace old generators and expand power generation capacity from 140 megawatts to 184 MW.
The plant, with an estimated to cost of as much as P12 billion, is targeted to be operational within the second half.
Petron, the only integrated oil refinery in the Philippines has mandated The Hongkong and Shanghai Banking Corporation Ltd. (HSBC) as the the sole global coordinator.
DBS Bank Ltd., HSBC, MUFG Securities Asia Limited, SMBC Nikko Securities (Hong Kong) Limited, Standard Chartered Bank and UBS AG Singapore Branch are the joint lead managers and Bookrunners for the issue.
As of September 30 last year, Petron had outstanding long-term debt of P70.695 billion and cash of P34.41 billion. These loans were obtained from various financial institutions under several credit facilities.
The oil refiner is in compliance with the covenants in its long-term debt agreements.