SMC Global Power raises $300M from securities

By Arra B. Francia, Senior Reporter

SMC Global Power Holdings, Inc. raised an additional $300 million from the issuance of senior perpetual capital securities that will be listed on the Singaporean exchange.

In a disclosure to the Philippine Dealing & Exchange Corp. on Thursday, the company said the funds came from additional subscriptions it received in relation to the $500 million worth of senior perpetual capital securities it issued on April 25.

Together with the original issuance, SMC Global Power now has $800-million outstanding securities.

The power generation arm of conglomerate San Miguel Corp. (SMC) engaged Credit Suisse (Hong Kong) Limited, Merrill Lynch (Singapore) Pte. Ltd., and UBS AG Singapore branch to act as joint lead managers for the additional securities.

The company also noted it has already secured approval in principle from the Singapore Exchange Securities Trading Limited (SGX-ST) for the listing and quotation of the shares.

“The additional securities are expected to be admitted to the official list of the SGX-ST on July 4, 2019,” the company said.

SMC Global Power intends to use the proceeds from the issuance for general corporate purposes, investments in power-related assets, and debt refinancing.

The company currently has a combined capacity of 4,197 megawatts (MW) from a combination of natural gas, coal, and hydropower sources. It accounts for 19% of the national grid’s power supply and a quarter of the Luzon grid.

Its portfolio includes the 218-MW Angat Hydroelectric power plant in Bulacan, the 450-MW greenfield power plant in Limay, Bataan, the 300-MW greenfield power plant in Malita, Davao Occidental, and the 684-MW Masinloc Power Generating Facility in Masinloc, Zambales.

Aside from this, the company is looking at the start of commercial operations of Unit 4 of the Limay Greenfield Power plant with 150 MW, and Unit 3 of the Masinloc Power Plant with 335 MW within the year. These facilities will bring SMC Global Power’s total attributable capacity to 4,682 MW.

SMC Global Power’s operating income grew 23% to P9.8 billion in the first quarter after consolidated revenues also went up 41% to P34.7 billion. Meanwhile, its parent SMC saw a 22% decline in attributable profit to P5.71 billion in the period amid a seven percent uptick in gross revenues to P250.92 billion.