San Miguel Corp.’s subsidiary SMC Global Power Holdings Corp. raised $600 million from the issuance of senior perpetual capital securities to finance battery energy projects and other general corporate purposes.
“We advise that on Jan. 21, 2020, the corporation issued $600-million senior perpetual capital securities with an initial rate of distribution of 5.7 percent per annum,” SMC Global said in a disclosure to the Philippine Dealing & Exchange Corp. on Jan. 21.
SMC Global Power said it obtained an “approval in-principle” the listing and quotation of the securities from the Singapore Exchange Securities Trading Ltd.
It expects the securities to be officially listed to on SGX-ST on Jan. 22.
The corporation engaged Credit Suisse (Hong Kong) Ltd., DBS Bank Ltd., JP Morgan Securities Plc, Mizuho Securities Asia Ltd., Standard Chartered Bank and UBS AG Singapore Branch as joint lead managers, DBS Trustees (Hongkong) Ltd. as trustee and Deutsche Bank AG, Hong Kong Branch as paying agent.
SMC Global Power increased the senior perpetual capital securities issuance to $600 million from the previously disclosed $500 million.
The company said on Jan. 7 that it would issue the new securities of up to $500 million “or such amount as the management may later determine, based on prevailing market conditions and as may be advantageous to the corporation.”
It said the new securities would be in addition to the outstanding and issued $500-million senior capital securities issued on April 25, 2019, $300-million senior perpetual capital securities issued on July 3, 2019 and the $500-million senior perpetual capital securities issued on November 5, 2019.
“The net proceeds from the issuance of the securities will be used and applied by the corporation for the development and completion of its battery energy storage systems (BESS) projects and for general corporate purposes,” the company said earlier.
The company is planning to put up BESS in several areas in Bulacan, Cagayan de Oro, Caticlan, Iloilo, Isabela, Ilocos Norte, Albay, Leyte, Bataan, Davao Occidental, Cebu, Pampanga, Mindoro, San Roque/San Manuel, Butuan, Zamboanga, Navotas, Negros Occidental, Cagayan, Compostela Valley, Zambales, Misamis Oriental, Rizal, Samar, Tarlac and Pangasinan, Zamboanga del Sur and Bohol.