Mariveles Power Generation Corp. (MPGC) tapped five local banks and other financial institutions for an omnibus loan of up to P50 billion, backed by its parent firm San Miguel Global Power Holdings Corp. (SMGP).
SMGP said in a disclosure to the Philippine Dealing & Exchange Corp. Tuesday its stockholders ratified the execution, delivery and performance by the corporation as sponsor and shares security grantor of the loan executed by MPGC, the company and the lenders.
The lenders include Asia United Bank Corp., Bank of Commerce, China Banking Corp., Development Bank of the Philippines and Philippine National Bank as well as other financial institutions. The ratification took place at a special meeting on April 14, 2025.
The company did not disclose the intended use of the loan proceeds. MPGC owns a 4 x 150-megawatt circulating fluidized bed coal-fired power plant in Mariveles, Bataan.
The company is undertaking a 600-MW expansion project, adding units 5 and 6 with a capacity of 300 MW each, slated for completion in 2029.
SMGP said its stockholders also approved an increase in its authorized capital stock to P7.8 billion, divided into 7.8 billion shares with a par value of P1 per share.
This is an increase from the previous P3.774 billion, divided into 3,774,400,000 shares with a par value of P1.
The stockholders also ratified the subscription by conglomerate San Miguel Corp. to 1,011,093,800 shares of SMGP stock with a par value of P1 at a subscription price of P30 apiece, totaling P30.33 billion out of the ACS increase.
SMGP said this is subject to the approval of the applications to be filed with the Securities and Exchange Commission for the ACS increase.
The company is involved in several expansion projects across various power generation technologies.
“The company plans to continue its strategic development of greenfield power projects in parallel with its plan to acquire existing power generation capacity. The company balances the need for reliable and cost-efficient operations with environmental performance, and views clean coal technologies and LNG power plants as viable and sustainable options for its greenfield power projects. SMGP also actively seeks to identify and pursue renewable energy investments such as hydroelectric power and solar power projects, subject to the outcome of viability and feasibility analysis,” SMGP said earlier.