SMC Global issues $600-m bonds to fund power plants

SMC Global Power Holdings Corp., the power generation arm of San Miguel Corp., said Thursday it issued $600-million worth of senior perpetual capital securities with an initial rate of distribution of 5.45 percent yearly.

SMC Global said in a disclosure to Philippine Dealing & Exchange Corp. it obtained an approval in-principle from the Singapore Exchange Securities Trading Ltd. for the listing and quotation of the securities.

The securities were expected to be admitted to the official list of the SGX-ST on June 10.

“The net proceeds of the securities will be used primarily for investments in the 1,313.1-MW Batangas combined cycle power plant and related facilities or for general corporate purposes,” SMC Global said.

SMC Global engaged Credit Suisse (Hong Kong) Ltd., DBS Bank Ltd., Mizuho Securities Asia Ltd., Standard Chartered Bank and UBS AG Singapore Branch as joint lead managers, DB Trustees (Hong Kong) Ltd. as trustee and Deutsche Bank AG, Hong Kong Branch as paying agency.

SMC through subsidiaries Excellent Energy Resources Inc. and Masinloc Power Partners Co. Ltd. won the “two best bids” for Manila Electric Co.’s 20-year 1,800-MW supply contract.

EERI offered to supply Meralco 1,200 MW from a natural gas-fired power plant, while MPPCL offered 600 MW from a coal-fired power plant.

EERI will construct three units of 425.7 MW each of combined cycle power plant in Ilijan, Batangas City capable of supplying 1,200 MW to Meralco. The power plants will be in operation not later than Nov. 26, 2024.

MPPCL will construct a 600 -MW coal-fired thermal power plant in Masinloc, Zambales that will start commercial operations not later than April 26, 2025.

SMC Global is also building 31 new battery energy storage facilities nationwide totaling 1,000 MW with capital expenditure budget of about $1 billion.

The company posted a net income of P7.77 billion in the first quarter, up by 141 percent from P3.22 billion in the same period last year.

Topics: SMC Global Power Holdings Corp. , San Miguel Corp. , senior perpetual capital securities
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