Petron to launch $500-M global peso bond: source

Reuters

Posted at 11/02/2010

MANILA, Philippines - Philippine oil refiner Petron Corp is set to launch a global peso bond offer of at least $500 million, with the issue likely to be priced on Wednesday, a source said.

The issue will carry 5-year and 7-year maturities, a source with direct knowledge of the deal said on Tuesday.

Petron's bond offer follows the government's successful maiden issue of $1 billion global peso bonds in September. The Philippines was Asia's first issuer of local currency bonds in the global market.

The company is the second after conglomerate SM Investments Corp to tap the global debt market after the government's September debt sale, and analysts said more corporates were likely to follow suit as they take advantage of foreign funds' renewed interest in fast-growing emerging markets.

Petron has mandated Credit Suisse, Deutsche Bank, HSBC, and Standard Chartered as joint lead arrangers and bookrunners.

The banks arranged investor meetings for the bond offer in Manila, Singapore, Hong Kong and London, from October 27 to November 1.

Petron earlier said it needs to raise financing for the expansion of its refinery and petrochemical business.