San Miguel Global Power Holdings Corporation (SMGP), the power generation arm of San Miguel Corporation (SMC), plans to return to the offshore debt market with the issuance of up to $300 million in senior permanent capital securities to refinance existing obligations and finance renewable energy projects.
In a disclosure to the Philippine Dealing and Exchange Corp on Tuesday, SMGP said its board of directors has approved the offering and issuance of securities, which will be listed on the Singapore Exchange Securities Trading Limited.
The company said the proceeds will be used to purchase and redeem its outstanding senior permanent capital securities issued on January 21, 2020, which have an initial distribution rate of 5.7%.
A portion of the funds will also be used to finance pre-development of solar and hydropower projects as well as capital expenditures related to battery energy storage system projects.
Through its wholly owned subsidiary SMC Global Light & Power Corp., SMGP is developing solar power projects with a combined capacity of approximately 2,670 MW at various sites in Luzon and Mindanao. These projects, located in Bataan, Davao, Bulacan and Isabela, are targeted for completion by 2029.
“For the avoidance of doubt, the net proceeds will not be applied in respect of any existing and planned coal-based power assets and/or liquefied natural gas assets of the Corporation and its subsidiaries,” SMGP said.
Standard Chartered Bank was appointed as sole lead manager, while DB Trustees (Hong Kong) Limited will serve as trustee. Deutsche Bank Aktiengesellschaft, Hong Kong branch was designated principal payment agent, settlement agent, transfer agent and registrar. Latham & Watkins was selected as the listing agent.
SMGP currently supplies about 20% of the national grid with a total installed capacity of 5,710 MW.
SMC shares closed 0.06% higher at P85 on Wednesday. — Sheldin Joy Talavera