SMC Global issues $150m in securities to fund cycle plant

SMC Global Power Holdings Corp. said Thursday it issued $150 million in senior perpetual capital securities to finance the construction of a 1,313.1-megawatt combined cycle power plant in Batangas province.

The amount is higher than the $100 million in additional senior perpetual capital securities issuance earlier approved by the board.

“We advise that on Sept. 15, 2021, the corporation issued US$150,000,000 senior perpetual capital securities, with an initial rate of distribution of 5.45 percent per annum,” the company said in a disclosure to Philippine Dealing & Exchange Corp.

SMC Global said it obtained an approval in-principle from Singapore Exchange Securities Trading Ltd. for the listing and quotation of the additional securities.

The additional securities are expected to be accepted to the official list of the SGX-ST on Sept. 16.

“The net proceeds of the additional securities will be used and applied by the corporation primarily for investments in the 1,313.1-MW Batangas combined cycle power plant and related assets or for general corporate purposes,” the company said.

SMC Global engaged Standard Chartered Bank and Mizuho Securities Asia Ltd. as joint lead managers; DB Trustees (Hong Kong) Limited as trustee and Deutsche Bank AG, Hong Kong Branch as paying agent; and Latham & Watkins as listing agent for the issuance of the additional Securities.

SMC Global said its board approved on Sept. 8 the issuance of securities of at least $100 million or such other amount determined by management, subject to prevailing market conditions as may be advantageous to the corporation. Alena Mae S. Flores

The securities will be consolidated and form a single series with the corporation’s existing $600-million senior perpetual capital securities issued on June 9.

SMC Global parent company San Miguel Corp. earlier said the combined cycle plant in Batangas City would provide clean and stable power to Manila Electric Co. over the next 20 years, beginning 2024.

The facility will provide power at a very competitive price, cheaper than what modern coal plants in the country offer. The power plant will utilize imported liquefied natural gas.

San Miguel’s subsidiary Excellent Energy Resources Inc. won the bid to supply Meralco 1,200 MW of baseload capacity following a successful competitive selection process.

Topics: SMC Global Power Holdings Corp. , senior perpetual capital securities , cycle power plant , Batangas province
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