San Miguel Global Power Holdings Corp., formerly SMC Miguel Global Power Holdings Corp., said Wednesday its board approved the issuance of up to P25 billion in redeemable perpetual securities.
SMCGP said in a disclosure to the Philippine Dealing and Exchange Corp. the securities would be issued under such terms and conditions determined by management to be most beneficial to the corporation.
SMCGP is one of the country’s biggest power companies whose diversified power portfolio includes natural gas, coal and renewable energy such as hydropower and recently battery energy storage systems.
These projects require billion of pesos in investments.
SMCGP listed its P40-billion fixed-rate bonds on PDEX last year followed strong demand from investors and confidence in the company’s ability to continue providing reliable power nationwide, while helping push thecountry toward a clean energy future.
SMCGP is a unit of conglomerate San Miguel Corp., which operates around 4,714 megawatts of combined capacity as of end-2021.
SMCGP initially aimed to raise P30 billion, but strong investor interest prompted the company to exercise its oversubscription option for another P10 billion.
The bonds comprise the first tranche of SMCGP’s P60-billion shelf-registered peso retail bonds consisting of Series K Bonds, with an interest rate of 5.9077 percent per annum due 2025; Series L Bonds at 7.1051 percent p.a. Due 2028; and Series M Bonds at 8.0288 percent due 2032.
“The funds provided by these bonds come at an opportune time as we continue with our commitment to provide the country with reliable power supply amidst present challenges in the global fuel market,” said SMC president and chief executive Ramon Ang earlier.
Ang said despite the high global fuel cost and supply woes brought on by the conflict between Russia and Ukraine, SMC’s power unit remained on track with plans to minimize the country’s dependence on coal as part of the conglomerate’s larger sustainability goals.
“SMC Global Power fully supports the government’s thrust in powering the nation as we continue to pursue business and expansion strategies that are aligned with our national and regional energy policies and needs―demonstrating our commitment to conduct business operations in a socially and environmentally responsible manner,” Ang said.
Ang said SMC and its operating units were working on a group-wide sustainability roadmap that would include major targets for its power business to achieve a sustainable energy future.
“Right now, we’re facing an unprecedented situation, but even as we work to maintain reliable and sufficient supply throughout this crisis, we are also very much focused on continuing our transition to cleaner and renewable fuel sources without compromising on supply, quality and affordability,” Ang said.