SMC Global OKs sale of $200m worth of securities

The board of SMC Global Power Holdings Corp. approved the issuance of additional senior perpetual capital securities amounting to at least $200 million to be consolidated to form a single series with the $500-million original securities.

“The additional securities will be identical in all respects with the original securities, other than with respect to the date of issuance and issue price,” SMC Global Power said in its report to the Philippine Dealing & Exchange Corp. 

SMC Global Power said it would use the net proceeds from the issuance of the additional securities “for general corporate purposes, investments in power-related assets and repayment of indebtedness.” 

The company will list the additional securities with the Singapore Stock Exchange.

It tapped Credit Suisse (Hong Kong) Ltd., Merrill Lynch (Singapore) Pte. Ltd. and UBS AG Singapore Branch as joint lead managers of the securities. 

“The securities have no fixed redemption date. Unless previously redeemed or purchased and cancelled in accordance with the provisions of Condition 5 (without prejudice to Condition 10), the securities will have no maturity date, unless the issuer elects to retain a fixed corporate term under its articles of incorporation,” it said.

SMC Global Power, along with its subsidiaries, associates and joint ventures, is one of the largest power companies in the Philippines, controlling 4,197 megawatts of combined capacity as of end March this year.

It has a diverse portfolio of fuel sources, including natural gas, coal, hydro and recently battery energy storage systems.

SMC Global Power is controlled by conglomerate San Miguel Corp., which joined the power industry in 2009 following the acquisition of rights to administer the output produced by independent power producers in privatization auctions conducted by the government. 

San Miguel’s IPPAs  includes the Sual coal-fired power plant in Sual, Pangasinan, San Roque hydro plant in San Manuel, Pangasinan and the Ilijan natural gas power plant in Ilijan, Batangas. 

An IPP administrator has the right to sell electricity generated by the power plants owned and operated by the relevant IPPs without having to bear any of the large upfront capital expenditures for power plant construction or maintenance.

Topics: SMC Global Power Holdings Corp. , capital securities
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