San Miguel Global Power’s P30-B bond offer cleared
MANILA, Philippines – The Securities and Exchange Commission (SEC) has approved the planned bond offering of San Miguel Global Power Holdings Corp., allowing the energy arm of San Miguel Corp. to raise up to P30 billion from the debt market.
In a statement on Tuesday, the SEC said its Commission En Banc had rendered effective the company’s registration statement covering P20 billion worth of fixed-rate bonds, with an oversubscription option of up to P10 billion, subject to compliance with remaining regulatory requirements.
READ: San Miguel power firm eyes $300M from bond market
The bond issuance will be offered at face value and will consist of three tenors: 5.25-year series N bonds due in 2031, seven-year series O bonds due in 2033 and 10-year series P bonds due in 2036, according to the regulator.
Should the oversubscription option be fully exercised, San Miguel Global Power could raise as much as P29.64 billion in net proceeds from the offering. The company said the funds will be used to refinance existing debt obligations and to partially finance its renewable energy projects, reflecting its push to expand investments in cleaner energy sources.
Based on the latest timeline submitted to the SEC, the offer period is scheduled from March 30 to April 10, with the bonds targeted to be listed on the Philippine Dealing and Exchange Corp. (PDEx) on April 17.
Fundraising
To handle the transaction, San Miguel Global Power tapped Bank of Commerce, BDO Capital & Investment Corp., and China Bank Capital Corp. as joint issue managers. They will work alongside Land Bank of the Philippines, Philippine Commercial Capital Inc., PNB Capital and Investment Corp. and Security Bank Capital Investment Corp. as joint lead underwriters and bookrunners.
The planned fundraising forms part of the power company’s broader financing strategy, which includes tapping the domestic capital market to support operations while gradually building up its renewable energy portfolio.
San Miguel Global Power is one of the country’s largest power generation companies, with assets spanning coal, natural gas, battery energy storage and renewable energy facilities.
The upcoming bond issuance marks another move by the company to secure long-term funding while managing its existing debt obligations. INQ
