SMC Global Power Corp., one of the largest power companies owned by conglomerate San Miguel Corp., plans to raise P15 billion from a bond offering.
Documents filed with the Securities and Exchange Commission showed SMC Global Power would issue fixed-rate bonds due 2021, 2023 and 2026. The bonds will have an early redemption option.
Proceeds from the bond offering will be used to refinance the company’s short-term loan provided by BDO Unibank Inc. Proceeds were used to fully redeem $300-million notes due 2016 and for general corporate purposes.
The bonds will be listed with the Philippine Dealing & Exchange Corp.
The company hired nine banks to handle the transaction, including BDO Capital and Investments Corp., Maybank ATR Kim Eng, SB Capital, BPI Capital Corp., PNB Capital Corp., Standard Chartered, China Bank Capital, RCBC Capital Corp. and United Coconut Planters Bank.
SMC Global Power currently controls 2,903 megawatts of combined contracted capacity with diversified fuel sources, including natural gas, coal and hydroelectric.
It operates the Sual, San Roque and Ilijan power plants. It also holds a 60-percent interest in Angat Hydro Power Corp., which operates the 218-MW Angat hydroelectric power plant.
SMC Global Power said it planned to further expand its power portfolio of additional capacity nationwide through greenfield power projects over the next few years, depending on market demand.
“With the increased development of greenfield power projects from 2016 onwards, an increasing portion of the portfolio of SMC Global Power is expected from company-owned and company-operated IPPs,” SMC Global Power said.
“In order to continue its strategic acquisitions of existing power generation capacity, SMC Global Power intends to participate in the bidding of selected National Power Corp. of the Philippines-owned power generation plants that are scheduled for privatization as asset sales or under the IPPA framework,” it said.
SMC Global Power had a 17 percent market share of the power supply of the national grid and a 22 percent market share of the Luzon grid as of end-2015.
SMC Global Power posted net income of P1.8 billon and revenues of P77.5 billion in 2015.