Petron bares plan to sell peso bonds for expansion project

BusinessWorld

Posted at Oct 22 2010 12:42 AM | Updated as of Oct 22 2010 08:42 AM

MANILA, Philippines - Listed oil giant Petron Corp. plans to issue peso-denominated bonds to raise money for the expansion of its refinery in Bataan.

In a disclosure to the Philippine Stock Exchange yesterday, the company said its board had approved an “issuance by the company of peso-denominated bonds which will be settled in dollars, and the implementation of all necessary corporate and other actions to proceed with the opening.”

Officials of Petron, which is controlled by diversified conglomerate San Miguel Corp. and the group of businessman Roberto V. Ongpin, could not be reached for details.

Earlier, Petron said it would consider fund-raising for the expansion of its refinery in Bataan’s Limay town.

Eric O. Recto, Petron president, had said the company was looking at raising a total $1 billion for the project.

Petron’s net income for the first quarter of the year stood at P1.9 billion, while sales revenues grew by 61.28% to P55.88 billion.

It claimed a market share of 37% for the period.

Shares in Petron stayed at P6.62 apiece at the close of Thursday’s trading.