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SMC unit to offer P15-B bonds

/ 05:03 AM July 09, 2018

The power generation unit of San Miguel Corp. plans to raise P15 billion from a new tranche of retail bond offering, proceeds from which will be used to refinance debt.

The P15-billion fixed rate bond issue proposed by SMC Global Power Holdings Corp., one of the country’s leading power generation companies, obtained the highest credit rating of “PRS Aaa” from local credit rating firm Philippine Rating Services Corp. (PhilRatings).


Debt paper rated “PRS Aaa” is considered to be “of the highest quality with minimal credit risk.” The issuer’s capacity to meet its financial commitment is deemed “extremely strong.”

This new offering represents the last tranche of SMC Global’s three-year shelf registration of up to P35 billion bond offer. In December, the company issued P20 billion under its existing shelf registration, which likewise merited a rating of PRS Aaa from Philratings.

PhilRatings maintained its PRS Aaa, with a “stable” outlook, for the earlier P20-billion tranche as well as for another outstanding P15 billion fixed rate bonds issued in July 2016.

In arriving at the rating, PhilRatings identified the following key “strengths” of SMC Global:

•its leading market position and solid platform for expansion.

•strong support from parent SMC and affiliates.

•the stability of earnings and substantial cash flows, supported by the long-term off-take contracts.

•its “ideal” position to capitalize on the growing demand for electricity in the Philippines, supported by the expansion of the domestic economy.

SMC Global has a combined capacity of 4,153 megawatts (MW) consisting of natural gas, coal and hydropower resources. Its combined capacity represents about 19 percent of the power supply of the national grid, 25 percent of the Luzon grid and 9 percent of the Mindanao grid.


Through wholly owned subsidiaries, SMC Global serves as the independent power producer administrator (IPPA) for the Sual, Ilijan and San Roque power plants. Its portfolio also 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, and the recently acquired 640-MW Masinloc Power Generating Facility in Masinloc, Zambales.

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TAGS: Business, San Miguel Corp.
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