SMC unit raising funds for combined cycle power plant project

San Miguel Corp (SMC) Global Power Holdings Corp. has issued $600 million worth of securities, proceeds of which would be used mainly to invest in a planned 1,313.1-megawatt (MW) combined cycle power plant in Batangas province.

The SMC subsidiary said in a disclosure to the Philippine Dealing System the senior perpetual capital securities carried an initial rate of distribution of 5.45 percent a year.

It said the securities were expected to be enrolled with the Singapore Exchange Securities Trading Ltd. on June 10, considering that the SGX-ST has approved in principle its listing.

Tapped for the issuance were Credit Suisse Hong Kong, DBS Bank, Mizuho Securities Asia. Standard Chartered Bank and UBS Singapore branch as joint lead managers.

SMC Global Power plans to add at least 2,848 MW of coal- and LNG (liquefied natural gas)-based capacity to its power generation portfolio as lower fuel costs lifted its net income despite the pandemic’s downward pull on revenues.

One of the projects in the lineup is the combined cycle power plant that will straddle the border of Barangays Ilijan and Dela Paz Proper in Batangas.

This will be part of diversification efforts and also of the expansion of the 1,200-MW Ilijan power complex in Batangas, which mainly runs on natural gas.

In relation to this, SMC Global Power is exploring various projects in the segment of regasification and storage of liquefied natural gas. —Ronnel W. Domingo INQ