The Securities and Exchange Commission approved the P60-billion bond shelf registration program of SMC Global Power Holdings Corp., a unit of diversified conglomerate San Miguel Corp.
SMC Global said it obtained the approval on April 1 to sell P60 billion worth of fixed rate bonds in tranches.
The first tranche will have a principal amount of P25 billion and with an oversubscription of up to P5 billion.
The bond offering is comprised of three-year Series H Bonds due 2022 with a fixed interest rate of 6.8350 percent a year, five-year Series I bond due 2024 at 7.1783 percent and seven-year J Bonds due 2026 with a fixed interest rate of 7.6 percent.
SMC Global set the offering period from April 1 to April 12 and the issue date on April 24.
The bonds will be listed with Philippine Dealing & Exchange Corp.
SMC Global tapped BDO Capital and Investments Corp., BPI Capital Corp., ChinaBank Capital, PNB Capital, RCBC Capital Corp. and SB Capital as joint issue managers and lead underwriters of the offering.
SMC Global plans to use the entire proceeds from the offering for the partial refinancing of current loans and obligations or re-denomination of US dollar-denominated debt.
SMC Global incurred the bulk of the loans mainly to finance the $1.9-billion acquisition of Zambales-based Masinloc power plant.
SMC Global is one of the country’s leading and largest power companies, with a combined capacity of 4,197 megawatts as of end-September 2018. Its diversified mix of fuel supply consists of natural gas, coal and hydropower resources.
The company’s combined capacity accounts for about 19 percent of the power supply of the national grid and 25 percent of the Luzon grid.
The company is expected to start commercial operations of Unit 4 (150 megawatt) of the Limay Greenfield Power Plant and Unit 3 (335 MW) of the Masinloc Power Plant by the second quarter of 2019.
Once completed, the projects will add 485 MW to the company’s portfolio, increasing its total capacity to 4,682 MW.
The company is also finalizing the engineering, procurement and construction contract for the Kabankalan BESS (2 x 20 MW) with one of the leading battery EPC contractors worldwide.