SMC power unit raises $600 million from issuance of perpetual notes

MANILA, Philippines — The power unit of diversified conglomerate San Miguel Corp. (SMC) has raised $600 million from the issuance of senior perpetual capital securities in Singapore.

In a regulatory filing, SMC Global Power Holdings Corp. said it issued $600 million senior perpetual capital securities with an initial rate of distribution of 5.7 percent per annum. 

This was higher than the $500 million amount it had previously announced.

SMC Global said it secured an approval in-principle from the Singapore Exchange Securities Trading Limited (SGX-ST) to list the securities.

 The issuance is in addition to the outstanding and issued $500 million senior perpetual capital securities issued on April 25, 2019, $300 million senior perpetual capital securities issued on July 3, 2019, and $500 million senior perpetual capital securities issued on Nov. 5, 2019. 

SMC Global engaged Credit Suisse (Hong Kong), DBS Bank Ltd., J.P. Morgan Securities plc, Mizuho Securities Asia, Standard Chartered Bank and UBS AG Singapore Branch as joint lead managers.

It also tapped DB Trustees (Hong Kong) as trustee, Deutsche Bank AG, Hong Kong Branch as paying agent. 

Proceeds from the offering will be used to finance the company’s battery energy storage systems (BESS) projects.

Apart from pursuing coal projects, SMC Global is also focused on investing in BESS and renewable energy projects as part of its objective to operate in an environmentally-responsible manner while considering energy security and affordability.

It is investing to add to the existing 10-MW Masinloc BESS and the planned 2x20-MW Kabankalan BESS.

SMC Global had also been cleared by the Department of Energy (DOE) to conduct grid impact studies (GIS) for 16 BESS projects.

The GIS is necessary in determining if the electricity to be generated by the power project can be absorbed by the grid.