SMC Global raising P60b from sale of peso bonds

SMC Global Power Holdings Corp., a unit of conglomerate San Miguel Corp., plans to raise up to P60 billion from the issuance of fixed rate peso bonds.

SMC Global Power said Thursday its board approved the bond issue for filing with the Securities and Exchange under a shelf registration program and listing under Philippine Dealing & Exchange Corp.

The power generation company will initially raise up to P25 billion with an oversubscription of P5 billion. The bonds will have tenors of three, five and seven years.

The company tapped five investment banks—BDO Capital and Investments Corp., BPI Capital Corp., China Bank Capital, PNB Capital and SB Capital—to as joint issue managers, underwriters and book-runners of the offering.

SMC Global Power plans to use the net proceeds from the offering to partially refinance existing loan obligations, re-denominate US dollar loans and invest in power related assets.

SMC Global Power said it incurred the loans mainly for the $1.9-billion acquisition of Zambales-based Masinloc power plant.

SMC Global Power tapped the local bond market last in August when its raised P15 billion from issuance of five-year fixed rate retail bond at 6.75 percent per annum.

It used the entire proceeds for refinancing outstanding shareholder advances and partially refunding existing loan obligations or re-denomination of US dollar denominated obligations.

SMC Global Power is one of the largest power companies in the Philippines, with 4,197 megawatts of combined capacity as of September 30, 2018. 

The company said its combined installed capacity comprised approximately 19 percent of the national grid, 25 percent of the Luzon grid and 9 percent of the Mindanao grid as of September 30, 2018.

The company said earlier it planned to put up 10,000 MW of renewable energy facilities, including large hydropower projects.

SMC Global Power’s expansion projects under construction include Unit 4 (150 MW) of the Limay Greenfield Power Plant and Unit 3 (335 MW) of the Masinloc Power Plant.

Topics: SMC Global Power Holdings Corp. , San Miguel Corp. , fixed rate peso bonds
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