SMC Global Power to raise up to P60 billion from bond offer

MANILA, Philippines — SMC Global Power Holdings Corp. has secured board clearance to raise up to P60 billion worth of bonds.

In a disclosure to the Philippine Dealing and Exchange Corp. (PDEx) yesterday, SMC Global said its board approved the issuance offer and sale to the public of peso-denominated shelf-registered fixed rate retail bonds of up to P60 billion.

SMC Global is rolling out its massive expansion plan to ramp up its renewable energy (RE) and clean power investments.

Scaling up the group’s RE and cleaner power investments will help in reducing its carbon footprint while helping address the country’s need for reliable and affordable power.

As of end-2021, SMC Global had authorized, but not yet disbursed P214.8 billion for capital projects.

SMG Global said the amount covers the construction of power plants, mostly utilizing high efficiency low emission technologies, LNG and battery energy storage systems (BESS) projects which are “in line with the group’s expansion projects and acquisition of fixed assets needed for normal operations of the business.”

“The said projects will be carried forward to the next quarters until its completion. The funds to be used for these projects will come from available cash and proceeds from outstanding long-term loans and issued SPCS (senior perpeptual capital securities),”SMC Global said.

SMC Global – through Excellent Energy Resources Inc. (EERI) – is constructing a 1,300-megawatt (MW) LNG combined cycle plant in Batangas City, which will provide clean and stable power to Manila Electric Co. (Meralco) for 20 years starting 2024.

Several of its subsidiaries are also putting up LNG combined cycle plants, namely a 600-MW LNG combined cycle power plant in Brgy. Tugas, Tabango, Leyte under Prestige Power Resources Inc. (PPRI), a 4x75-MW LNG combined cycle power plant within the San Carlos City Ecozone in San Carlos City, Negros Occidental under Reliance Energy Development Inc., and a 600-MW LNG combined cycle power plant in Barangays Poblacion and Looc, Lapu-Lapu, Cebu under Converge Power Generation Corp.

SMC Global is also set to build small-scale LNG plants in eight to 10 islands in the Visayas and Mindanao regions to boost rural electrification.

To complement its development of renewable energy (RE) projects and as part of growing its portfolio, the company is working to complete 31 BESS facilities with a combined capacity of 1,000 MW by yearend.

Of the total, 18 BESS projects with a combined capacity of 720 MW are in Luzon, eight BESS facilities with a capacity of 190 MW in Visayas, and five with a capacity of 90 MW in Mindanao.

SMC Global will also build solar plants combined with battery storage facilities at 10 locations throughout the country. These will be operational by 2023.

The company has lined up several hydroelectric power plants in Luzon, including a 300-MW pumped-storage hydropower facility in Aklan to be completed by 2025 to boost the renewable energy and peaking supply in the Visayas grid.

The company controls 4,714 MW of combined capacity from coal, hydroelectric power, natural gas and BESS facilities as of end-2021.