SMC Global raises $600 million from notes issuance

MANILA, Philippines — SMC Global Power Holdings Corp. has raised $600 million from the issuance of senior perpetual capital securities in Singapore.

In a regulatory filing, SMC Global Power Holdings Corp. said the notes have an initial rate of distribution of 5.45 percent per annum.

Last month, its board approved to increase the issuance of the securities from at least $300 million to S600 million this year.

“The net proceeds of the securities will be used primarily for investments in the 1,313.1 MW Batangas combined cycle power plant and related facilities or for general corporate purposes,” SMC Global SVP and general manager Elenita Go said.

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

SMC Global, through subsidiary Excellent Energy Resources Inc. (EERI), is also putting up the Ilijan natural gas fired plant in Batangas.

The power plant has secured a 20-year contract to supply its full capacity to Manila Electric Co. (Meralco) starting 2024.

SMC Global has also proposed an 850-MW mid-merit plant scheduled to commence operations in 2022.

For this year, SMC Global is eyeing to offer up to P20 billion out of its remaining shelf registered fixed rate bonds with an aggregate principal amount of P60 billion.

The bonds comprised of a three-year Series H due 2022 at 6.835 percent a year, five-year Series I due 2024 at 7.1783 percent and 10-year Series J due 2027 at 7.6 percent.

SMC Global is also looking to execute term loan facilities with two banks -$100 million with Mizuho Bank and $80 million with Maybank International Labuan Branch this year.