San Miguel Global Power Holdings Corp. (SMGP) plans to offer up to $150 million in senior perpetual capital securities to fund the development of solar, hydro and battery energy storage projects.
SMGP informed the Philippine Dealing and Exchange Corp. that its management has been authorized to determine the terms, conditions, and timing of the new securities offering.
The company’s board approved the appointment of Standard Chartered Bank as sole bookrunner and sole lead manager.
DB Trustees (Hong Kong) Limited will serve as trustee, while Deutsche Bank Aktiengesellschaft, Hong Kong Branch, will act as paying agent, calculation agent, transfer agent and registrar. Latham & Watkins was appointed as the listing agent for the issuance and listing of the securities.
SMGP said it intends to use the net proceeds from the securities for pre-development costs of solar and hydropower energy projects, as well as capital expenditures related to battery energy storage systems projects.
The company said that “the net proceeds will not be applied in connection with any of the corporation’s existing and planned coal-fired power assets and/or liquefied natural gas assets (including, but not limited to, their construction and working capital requirements).”
A portion of the proceeds will also cover costs and expenses related to securities exchange offers, including accrued distribution amounts for existing securities accepted for exchange, issuance costs for the new securities, and the purchase, repurchase, and/or redemption of all remaining outstanding existing securities.
SMGP also announced that it is inviting eligible holders of existing securities to exchange it for an equal amount of the new US dollar denominated securities to be issued by the company.
This eligible existing securities are those listed with the Singapore Exchange Securities Trading Ltd., namely: the 7 percent Senior Perpetual Capital Securities issued on Oct. 21, 2020 and the 5.7 percent Senior Perpetual Capital Securities issued on Jan. 21, 2020
SMGP is a wholly-owned subsidiary of San Miguel Corporation (or SMC), one of the largest and most diversified conglomerates in the Philippines.
SMGP, together with its affiliates, subsidiaries, associates and joint ventures, is one of the largest power companies in the Philippines controlling an aggregate of 6,080 megawatts of combined capacity as of December 31, 2024.
SMGP is actively pursuing several pumped storage hydropower projects. This follows the Department of Energy’s notice of award to potential winning bidders for the third auction round of the Green Energy Auction Program (GEA-3) on June 9, 2025.
Among the winning bidders are San Roque Hydropower Inc. (SRHI), for an aggregate offered capacity of 1,850 megawatts (MW) of pump storage hydropower across three facilities, slated for completion between 2031 and 2035 and Pan Pacific Renewable Power Phils. Corp., for an aggregate offered capacity of 2,300 MW of pump storage hydropower and impounding hydropower across three facilities, to be completed between 2028 and 2032.
Both Pan Pacific and SRHI have accepted their respective awards.
SMGP also disclosed that it acquired a 40-percent equity interest in FPSP Holdings Corp. in December 2024. FPSP Holdings is a holding company that owns Pan Pacific, a Philippine-incorporated company primarily engaged in the exploration, development, and generation of various energy sources, including geothermal, hydro-electric, wind, and solar, as well as conventional energy sources.
