SMC unit raises $400M via bond issuance
SMC Global Power Holdings Corp. raised at the Singapore bond market $400 million, one-third more than initially planned and intended to fund planned projects in liquefied natural gas, among others.
The San Miguel group’s power generation unit said in a disclosure the perpetual capital securities were tagged at 7 percent a year.
The company has obtained from the Singapore Exchange Securities Trading Ltd. approval in-principle for the securities’ listing and quotation.
Announced earlier this month at just “up to $300 million,” the issuance also covers the refinancing of SMC Global Power’s financial obligations.
SMC Global Power plans to build an LNG terminal in Batangas, which is intended to start operations by June 2022.
Earlier, the company said it was in advanced stages of executing a binding agreement with global engineering firm AG&P to provide receiving, storage and regasification services for the current and future needs of the Ilijan power plant.
The company operates and manages the 1,200-megawatt gas-fired generator complex under contract with the Power Sector Assets and Liabilities Management Corp., which lapses in June 2022.
Aside from San Miguel, there are four groups that are developing LNG facilities in anticipation of waning output from the Malampaya production field.
These are Exalarate Energy, Batangas Clean Energy, Energy World Corp., and the joint venture of First Gen and Tokyo Gas—all of which have obtained the green light from the Department of Energy.