SMC power unit nears completion of P60 B bond sale

MANILA, Philippines — SMC Global Power Holdings Corp., the power generation arm of San Miguel Corp., hopes to complete its P60-billion bond shelf registration program next year with the first tranche listed at the Philippine Dealing and Exchange Corp. (PDEx) yesterday.

The first tranche comprises P30 billion worth of three year Series H bonds due 2022 at 6.835 percent, five-year Series I due 2024 at 7.1783 percent, and 10-year Series J due 2027 at 7.6 percent.

PDS Group president Ma. Theresa Ravalo said the issuance was oversubscribed.

“We are delighted to note that since its debut three years ago, San Miguel Global Power has issued and listed their securities every year. And this year, with an oversubscribed issuance, it is a testament to the SMCGP corporate name that it is able to tap the market in a sizeable amount amid competition from large issues of financial institutions,” she said.

SMC Global general manager Elenita Go said proceeds would be used to bankroll the power firm’s expansion plans, particularly the SMC Consolidated Power Corp. plant in Limay, Bataan.

“The funds provided by these bonds come at an opportune time as our country faces the daunting challenge of ensuring that adequate and affordable supply of power is available to meet our constantly growing demand,” Go said.

The SMC power unit is currently completing the 160-megawatt (MW) Unit 4 of the Limay greenfield power plant, which is expected to commence operations within the second quarter.

“SMC Global Power stands ready to take on these challenges, and pursue a business model and an expansion strategy, all within a culture of excellence and innovation, that not only supports the government’s national and regional energy policies and needs, but also unequivocally show that there are better ways of conducting day-to-day business operations in a socially and environmentally responsible manner,” Go said.

She said the proceeds are enough to meet the company’s requirements this year. The next tranche of up to P30 billion bonds is expected to be issued next year.

Apart from the Limay power plant, SMC Global is also doing final works on the 335-MW Unit 3 expansion of the Masinloc power plant—which it acquired from AES Philippines.

It also intends to continue expanding its portfolio through strategic development of greenfield power projects and acquisition of existing power plants.

In particular, it will still put up coal power plants, particularly clean coal technology.

Among the coal plants in the pipeline include the 4x150-megawatt (MW) circulating fluidized bed coal-fired power plant in Mariveles, Bataan and the 600-MW coal power plant in Pagbilao, Quezon.

For renewable energy developments, SMC president and COO Ramon Ang earlier said the company was  targeting up to 10,000 MW of new renewable energy capacity in the next 10 years.

SMC Global Power is also pursuing battery energy storage systems (BESS) developments, with 16 projects already approved for grid impact studies (GIS) by the Department of Energy (DOE).