SMC power unit lists P15-B bonds on PDEx

SMC Global Power Holdings Corp. yesterday listed on Philippine Dealing & Exchange (PDEx) Corp. P15 billion worth of fixed rate bonds, completing a P35-billion package that was approved in 2017.

This issue has a tenor of five years and carries an interest rate of 6.75 percent yearly.

Bond proceeds will be used for debt repayment, particularly to BDO Unibank and Philippine National Bank.

SMC Global Power had borrowed money from these lenders for equity infusion into various projects such as Davao Greenfield Power plant, Limay Phase 1 and Phase 2 greenfield power plant, Angat Hydro Power Plant and Limay C-Generation Power Plant (sold to Petron in 2016).

BPI Capital and Investment Corp., China Bank Capital Corp. and PNB Capital and Investment Corp. are the the joint issue managers, joint lead underwriters and bookrunners of the offering.

The papers are available to investors through Bank of Commerce, SB Capital Investment Corp. and United Coconut Planters Bank.

At the listing ceremony, PDEx president and chief operating officer Antonino A. Nakpil said this was the 15th listing for 2018 and brings the total volume of new listing for this year to P120.92 billion.

This also brought the total volume of outstanding securities listed at PDEx to P913.1 billion.

“[This] will be the last of its (San Miguel group’s) shelf registration of P35 billion that was approved last year,” Nakpil said. “It’s last issue memorably capped our record listing year for 2017.”

He was referring to the listing last December of five year bonds, seven-year bonds and 10-year bonds totalling P20 billion.

“The large sizes have been par for the course for San Miguel as its companies have always come to the capital markets trusting the capability of investors to supply the funding and confident of their own ability to access those resources,” Nakpil said.

SMC Global Power general manager Elenita D. Go said “the funding for this bond is a big step toward our mission to support nation-building and contribute to our country’s economic progress.”