SMC Global issues $150 million perpetual notes

MANILA, Philippines — SMC Global Power Holdings Corp. (SMCGP), the power unit of San Miguel Corp. (SMC), has issued senior perpetual capital securities amounting to $150 million.

In a disclosure to the Philippine Dealing and Exchange Corp. (PDEx) yesterday, SMC Global said the notes have an initial rate of distribution of 5.45 percent per year.

These securities were listed and quoted on the Singapore Exchange Securities Trading Limited yesterday.

“The net proceeds of the additional securities will be used and applied by the corporation primarily for investments in the 1,313.1 (megawatts) MW Batangas combined cycle power plant and related assets or for general corporate purposes,” the company said.

SMC Global is gearing up to build a 1,300-MW liquified natural gas combined cycle plant in Batangas City, which will provide clean and stable power to Manila Electric Co. (Meralco) over the next 20 years beginning 2024.

The facility will provide power at a very competitive price, cheaper than what modern coal plants in the country are offering.

After a competitive bidding in February, SMC Global’s subsidiary Excellent Energy Resources Inc. signed a power supply agreement with Meralco to provide 1,200 MW from a natural gas-fired power plant with an all-in headline rate of P4.7450 per kilowatt hour (kWh) and computed all-in levelized cost of electricity of P4.8849 per kWh by November 26, 2024.

The plant is part of SMC Global’s plans to ramp up its renewable energy and cleaner power investments to reduce its carbon footprint while helping address the country’s need for reliable and affordable power.

The new issuance comes after a board approval to issue additional senior perpetual capital securities of at least $100 million.

SMC Global engaged Standard Chartered Bank and Mizuho Securities Asia Ltd. as joint lead managers; DB Trustees (Hong Kong) Ltd. as trustee and Deutsche Bank AG, Hong Kong Branch as paying agent; and Latham & Watkins as listing agent.