SMC Global Power secures $700 M for Masinloc plant

MANILA, Philippines — SMC Global Power Holdings Corp., the power arm of diversified conglomerate San Miguel Corp. (SMC), has secured funding arrangements to finance its Masinloc plant acquisitions.

SMC Global has executed a facility agreement with Mizuho Bank Ltd.-Singapore Branch, Standard Chartered Bank and Sumitomo Mitsui Banking Corp.-Singapore Branch for an unsecured syndicated term loan facility of up to $700 million, the firm said in a disclosure to the Philippine Dealing & Exchange Corp.

The company said the loan facility is “intended to partially finance the acquisition by the corporation of Masin-AES Pte. Ltd., AES Transpower Private Ltd. and AES Philippines Inc.”

Mizuho Bank, Standard Chartered Bank and Sumitomo Mitsui were also tapped as mandated lead arrangers, bookrunners and underwriters.

Meanwhile, Standard Chartered Bank (Hong Kong) Ltd. was signed up as facility agent.

In a separate disclosure to the Philippine Stock Exchange, SMC said it will subscribe to the $650-million redeemable perpetual securities to be issued by SMC Global.

The issuance will also be “used partially finance the acquisition of the Masinloc power assets.”

In December 2017, SMC Global signed a deal with the AES owners and took over the Masinloc power projects for roughly $1.9 billion.

Last month, the Philippine Competition Commission (PCC) green-lit SMC Global’s acquisition of shares in Masin-AES Pte. Ltd., AES Transpower Pte. Ltd. and AES Philippines Inc. to add in its power generation and retail electricity portfolio.

The SMC power unit acquired 51 percent and 49 percent equity interests of AES Phil Investment Pte. Ltd. and Gen Plus B.V., respectively, in Masin-AES; 100 percent equity interest of AES Corp. in AES Transpower; and 100 percent stake of AES Phil in AES Philippines.

AES Philippines owns the Masinloc coal-fired thermal plant and Masinloc Battery in Zambales and Kabankalan Battery Storage System in Kabankalan, Negros Occidental.

The oldest facility, which is the Masinloc coal-fired power plant, was privatized by government in 2008, where AES won the auction for the Zambales-based coal-fired facility with its bid of $930 million.

These power facilities will add to SMC Global’s portfolio in the power generation market which currently includes Sual Power Plant in Sual, Pangasinan; San Roque Hydroelectric Multipurpose Power Project in San Manuel, Pangasinan; Ilijan Power Plant in Ilijan, Batangas; Limay Greenfield Clean Coal Plant in Limay, Bataan; Angat Hydroelectric Power Plant in Angat, Bulacan; and Greenfield Powerplants in Malita, Davao del Sur and Limay, Bataan.