SMC power unit eyes $100-M securities offering for projects

SAN MIGUEL Global Power Holdings Corp. (SMGP), the power arm of conglomerate San Miguel Corp. (SMC), is eyeing to offer up to $100 million in senior perpetual capital securities.

The company’s board of directors has approved the offer and issuance of additional senior perpetual capital securities worth at least $100 million, SMGP told the Philippine Dealing & Exchange Corp. (PDEx) on Tuesday.

The energy company said the amount of the new securities is subject to “prevailing market conditions and as may be advantageous to the corporation.”

“The net proceeds of the additional securities shall be applied primarily for pre-development costs of solar energy projects and capital expenditures related to battery energy storage projects,” SMGP added.

The proposed securities issuance will be listed on the Singapore Exchange (SGX) for trading.

SMGP appointed Standard Chartered Bank as sole lead manager, DB Trustees (Hong Kong) Limited as trustee, Deutsche Bank AG (Hong Kong Branch) for multiple agent roles, and Latham & Watkins as listing agent.

Last month, the company told PDEx that its board had approved the offer and issuance of up to $300 million in senior perpetual capital securities to finance solar power projects.

It issued $492.11 million in senior perpetual capital securities in November 2019, and another $723.9 million in October 2020.

As of end-June, SMGP and its affiliates have a combined capacity of 5,207 megawatts, including natural gas, coal, hydroelectric power, and battery energy storage systems. — Sheldeen Joy Talavera