SMC power unit prices P30-B bond offering

SMC Global Power Holdings Corp., one of the country’s largest power generation firms, has priced a fresh multiyear bond offering worth as much as P30 billion.

This represents the first tranche of SMC Global Power’s three-year bond shelf registration of up to P60 billion.

The company launched the bond offering in three-, five- and seven-year tenors at interest rates of 6.835 percent, 7.1783 percent and 7.6 percent, respectively, a year. Coupon payment will be made on a quarterly basis.

The offering started on April 1 and will run until April 12 this year.

The bonds are offered to the public in minimum denominations of P50,000 and in multiples of P10,000 thereafter.

The joint issue managers, joint lead underwriters and bookrunners are BDO Capital, BPI Capital, Chinabank Capital, PNB Capital, RCBC Capital and SB Capital.

SMC Global Power’s bonds have obtained the highest credit rating from local credit watcher Philippine Rating Services Corp. (PhilRatings) with a “stable” outlook.

PRS Aaa is the highest credit  rating on PhilRatings’ long-term issue credit rating scale. This means the bond is deemed to be of the “highest quality with minimal credit risk” and that the borrower’s capacity to meet its financial commitment on the obligation is “extremely strong.” A “stable” outlook means that the rating is likely to be maintained or to remain unchanged in the next 12 months.”

In a statement, Philratings cited SMC Global Power’s leading market position and solid platform for expansion, strong support from its parent conglomerate, San Miguel Corp., stable earnings and substantial cash flows as supported by the long term off take contracts of the company, and ideal position to capitalize on the growing demand for electricity in the Philippines as supported by the expansion of the domestic economy.

SMC Global Power has total capacity of 4,197 megawatts as of end-September 2018. It accounts for 19 percent of the power supply of the national grid and 25 percent of the Luzon grid.

It boosted its 2018 consolidated revenue by 45 percent to P120.1 billion. Operating income rose by 37 percent to P33.2 billion. —DORIS DUMLAO-ABADILLA