SAN MIGUEL Global Power Holdings Corp. (SMGP), the facility generation arm of San Miguel Corp. (SMC), plans to return to the offshore debt market with the issuance of as much as $300 million in senior perpetual capital securities to refinance existing obligations and fund renewable energy projects.
In a disclosure to the Philippine Dealing & Exchange Corp. on Tuesday, SMGP said its board of directors approved the offer and issuance of the securities, which will probably be listed on the Singapore Exchange Securities Trading Ltd.
The corporate said the proceeds will probably be used to buy and redeem its outstanding senior perpetual capital securities issued on Jan. 21, 2020, which carry an initial distribution rate of 5.7%.
A part of the funds may also be used to finance the pre-development of solar and hydropower projects, in addition to capital expenditures related to battery energy storage system projects.
Through its wholly owned subsidiary SMC Global Light and Power Corp., SMGP is developing solar energy projects with a combined capability of about 2,670 megawatts across various sites in Luzon and Mindanao. These projects, situated in Bataan, Davao, Bulacan, and Isabela, are targeted for completion through 2029.
“For the avoidance of doubt, the online proceeds is not going to be applied in reference to any of the Corporation’s and its subsidiaries’ existing and planned coal-fired power assets and/or liquefied natural gas assets,” SMGP said.
Standard Chartered Bank was appointed as sole lead manager, while DB Trustees (Hong Kong) Ltd. will function trustee. Deutsche Bank Aktiengesellschaft, Hong Kong Branch, was named principal paying agent, calculation agent, transfer agent, and registrar. Latham & Watkins was tapped as listing agent.
SMGP currently supplies about 20% of the national grid, with a complete installed capability of 5,710 megawatts.
On Wednesday, shares of SMC rose 0.06% to shut at P85 apiece. — Sheldeen Joy Talavera