Petron get SEC’s nod to issue P20B bonds
The oil refining subsidiary of San Miguel Corp. obtained the Securities and Exchange Commission’s approval to issue P20 billion worth of fixed-rate bonds.
This represents the last tranche of Petron Corp.’s three-year shelf registration of up to P40 billion.
The bond issue was assigned the top rating by Philippine Rating Services Corp. (PhilRatings). Obligations rated PRS Aaa are of the highest quality with minimal credit risk. The issuer’s capacity to meet its financial commitment on the obligation is extremely strong.
The rating was also assigned an Outlook of Stable which means the rating is likely to remain unchanged in the next 12 mnonths.
PhilRatings took into account Petron’s growing sales volume, supported by the continued expansion in its distribution network and the firm’s being consistently among the top three players in the retail fuel market, both in the Philippines and Malaysia.
Also considered were Petron’s sound business strategy and experienced management and the healthy economic outlook and an inelastic demand for fuel that tempers the impact of crude price volatilities and regulatory risks.
Petron operates the largest petroleum refinery complex in the Philippines located in Limay, Bataan. Based on data from the Department of Energy (DOE), Petron continued to lead the local oil industry in 2017, accounting for a market share of 27.6 percent.