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Friday, March 29, 2024

SMC Global Power plans to sell P35-b debt securities

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SMC Global Power Holdings Inc., the power generation unit of conglomerate San Miguel Corp., said it plans to issue up to P35 billion worth of debt securities under a shelf-registration program to refinance dollar-denominated debts.

SMC Global said in a recent regulatory filing its board of directors approved the issuance and offering of bonds with an initial tranche of P25 billion.

“Proceeds from the offering will be used to refinance outstanding loans of the parent company totaling $400 million,” SMC Global said.

The bond will be registered with the Securities and Exchange Commission and listed with Philippine Dealing & Exchange Corp.

This will be the second bond offering of SMC Global after raising P15 billion in fixed-rate bonds due 2021, 2023 and 2026.

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The company has been paying down dollar-denominated debts to minimize the group’s exposure to foreign exchange losses brought about by the peso depreciation against the US dollar.

It paid $500 million out of the $700 million five-year term loan via refinancing through peso-denominated loans this year.

SMC Global Power is one of the largest power companies in the Philippines controlling 2,903 megawatts of combined contracted capacity as of December 2015.  It has diversified fuel sources, including natural gas, coal and hydroelectric.

The power generation firm had a 17-percent market share of the power supply of the national grid and 22-percent market share of the Luzon grid as of end December 2015.

San Miguel president Ramon Ang earlier said the company would push through with a plan to conduct an initial public offering of SMC Global within the year.

SMC Global posted a net income of P2.65 billion in the first half, a 60.7-percent decline from P6.74 billion it recorded in the same period last year.

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