SMC Global’s P15-B bond offering OKd

The Securities and Exchange Commission has approved a P15-billion retail bond offer planned by power firm SMC Global Power Holdings Corp.

Based on a document from the SEC, the power generation arm of conglomerate San Miguel Corp.  will raise P5 billion each from the offering of five-, seven- and 10-year bonds.

The bonds will be offered at 100 percent face value.  They will be listed and traded at the fixed income platform Philippine Dealing & Exchange Corp.

SMC Global intends to use the bulk of the proceeds to refinance an outstanding short-term loan with BDO Unibank amounting to $300 million.  This loan was used to redeem bonds maturing this year.

The bonds will be issued in scripless form in minimum denomination of P50,000 each and in integral multiples of P10,000 thereafter.

Nine banks were mandated as joint issue managers, lead underwriters and bookrunners for this offering: BDO Capital & Investment Corp.; BPI Capital Corp., China Bank Capital Corp.; Maybank ATR Kim Eng Capital Partners Inc.; PNB Capital and Investment Corp.; RCBC Capital Corp.; SB Capital Investment Corp.; Standard Chartered Bank and United Coconut Planters Bank.

SMC Global Power is one of the largest power companies in the Philippines, controlling 2,903 megawatts of combined capacity as of end-2015. It had a 17-percent share of the power supply of the national grid and 22 percent of the Luzon grid as of end-2015. Doris Dumlao-Abadilla