San Miguel energy unit raises $100M for managing debt
San Miguel Global Power (SMGP), the energy subsidiary of the tycoon Ramon Ang-led conglomerate, has secured an additional $100 million from issuing fresh senior perpetual securities on the offshore bond market.
In a document posted on the Philippine Dealing System Holdings Corp., the company said it issued $100 million worth of senior perpetual capital securities, on top of the $500 million it offered in December last year.
The additional securities were also listed on the Singapore Exchange Securities Trading Ltd.
For this new round of fundraising activity, SMGP said it tapped Deutsche Bank AG, Singapore Branch as its placement agent.
Proceeds from this batch would be used for “partial purchase, repurchase and/or redemption” of outstanding senior perpetual securities issued in October and December 2020.
In an earlier filing, the group said a portion of the proceeds from the earlier fundraise would finance the predevelopment costs of solar and battery energy storage systems (BESS).
No funding for coal
SMGP also noted that no funds would be allotted for its existing and planned coal-fired power facilities.
From 2019 to 2020, the firm also secured about $1.22 billion from the issuance of senior perpetual securities.
SMGP is a major player in the Philippine energy market, with a generating capacity of about 5,356 megawatts (MW) as of September 2024, comprising 21 percent of the national grid.
Such a portfolio includes facilities that run on natural gas, coal and renewable energy, such as hydroelectric power and BESS.
According to SMGP, more power projects are on the table.
Further, the group partnered with two other titans—Meralco PowerGen Corp. or MGen and Aboitiz Power Corp.—in a $3.3-billion deal to launch the “most expansive” liquefied natural gas facility in Batangas.
The Philippine Competition Commission gave its go signal for the transaction last December.
Under their agreement, MGen—the Manila Electric Co.’s power generation arm—and AboitizPower would jointly invest in SMGP’s 1,278-MW Ilijan gas-fired power plant and the new 1,320-MW facility.
Following this development, the Energy Regulatory Commission said it would conduct a review amid potential issues on market share limitations.
