SyCipLaw advises Deutsche Bank, Stan Chart, HSBC and UBS on issuance by Petron of US$750 million Undated Subordinated Capital Securities

March 15, 2013

SyCipLaw acted as Philippine counsel to Deutsche Bank AG, Standard Chartered Bank, The Hongkong and Shanghai Banking Corporation Limited, and UBS AG, joint bookrunners and lead managers of the issuance by Petron Corporation of US$750 million Undated Subordinated Capital Securities in two tranches. This is said to be the Philippines’ largest offshore issuance of hybrid securities to date.

The hybrid securities were priced at 7.5% a year for the first tranche of US$500 million and 6.551% per year for the second tranche of US$250 million, which can be redeemed after 5.5 years and every 6 months thereafter. If unredeemed, Petron will have to pay a step-up rate.

Petron Corp. is the country’s largest oil refining and distribution company. Proceeds of the issuance will be used to finance the company’s Refinery Master Plan 2.

The SyCipLaw team was composed of partner Vicente D. Gerochi IV, senior associate Melyjane G. Bertillo, and associate Joanna Marie O. Joson.