SMC Global Power Holdings Corp. said Monday its board approved the financing arrangements, including the issuance of $650 million worth of securities, in favor of parent company San Miguel Corp. to finance its projects.
SMC Global said in a disclosure to the Philippine Dealing & Exchange Corp. its board approved “the necessary funding arrangements to finance the corporation’s projects, including but not limited to, the issuance by the corporation of peso-denominated redeemable perpetual securities equivalent up to $650 million in favor of SMC.”
SMC Global vowed to expedite the completion of the 330-megawatt Masinloc coal-fired power plant expansion in Zambales province, following the recent approval by the Philippine Competition Commission of the acquisition of shares in Masin-AES Pte. Ltd., AES Transpower Pte. Ltd. and AES Philippines Inc.
San Miguel president Ramon Ang said the Masinloc plant expansion project would now be completed faster under SMC Global.
SMC Global acquired the stakes of AES Corp. of the US and Electricity Generating Public Co. of Thailand in Masinloc Power Partners Co. Ltd. in December 2017 for $1.9 billion.
The transaction is expected to close in the first half of 2018, subject to regulatory approvals.
The transaction involves the acquisition of SMC Global of the 51-percent and 49-percent equity interests of AES Phil Investment Pte. Ltd. and Gen Plus B.V., respectively, in Masin-AES Pte. Ltd., 100-percent equity interest of tAES Corp. in AES Transpower Pte. Ltd. and 100-percent equity interest of AES Phil in AES Philippines Inc.
SMC Global will then become the 100-percent owner of each of Masin-AES, AES Transpower and AES Philippines.
The company will own the existing 630-MW Masinloc coal-fired power plant in Masinloc, Zambales, the 335-MW expansion project which is located on the same site and the 10-MW battery energy storage facility.
The 330-MW expansion project will be one of the first power plants in the country to utilize efficient supercritical technology when it starts commercial operation by mid-2019.
SMC Global, the power generation arm of SMC, is one of the country’s biggest power plant operators. It has three power plants under its portfolio, including the 1,218-MW Sual, 735-MW Pagbilao and 345-MW San Roque power plants.