MANILA, Philippines - Petron Corp. has set the dividend rate for its planned P10-billion preferred share offering at 9.5281% per annum.

The rate falls near the higher end of the oil giant's 9.3% to 9.55% target range. It was based on yesterday's 5-year PDST-F rate of 6.2781% p.a. plus a spread of 3.25%, Petron said in a disclosure to the Philippine Stock Exchange (PSE).

Petron plans to sell up to 100 million preferred shares at P100 apiece to raise up to P10 billion ($216 million) for capital spending and short-term debt repayment.

The offering will start on February 15 and end on February 27.

The preferred shares will be listed on the first board of the PSE on March 5.

The preferred shares are non-voting and non-convertible and are redeemed at the option of the company. The shares will be prioritized in dividend payouts and will be given preference in case of company liquidation.

Petron earlier appointed BDO Capital and Investment Corp., BPI Capital Corp., and ING Bank N.V. Manila as the joint issue managers and lead managers for the offer.