SMGP OKs issuance of $145 million redeemable perpetual securities

MANILA, Philippines — San Miguel Global Power (SMGP) has approved a fresh offering of redeemable perpetual securities.

San Miguel Global Power told the Philippine Dealing & Exchange Corp. yesterday that its board has sanctioned the issuance of up to $145 million redeemable perpetual securities.

The company said the issuance would be “under such terms and conditions determined by management to be most beneficial to the corporation.”

No further details on the offering were provided by the company.

Last March, San Miguel Global Power issued $500 million redeemable perpetual securities in favor of San Miguel Corp. (SMC) at a distribution rate of eight percent per annum, payable quarterly.

The company said the securities are redeemable at the option of the issuer in whole or in part at any time on any distribution date.

San Miguel Global Power is the power arm of conglomerate SMC.

The company, through its subsidiaries, sells power through offtake agreements directly to distribution utilities, electric cooperatives and industrial customers, or through the Wholesale Electricity Spot Market.

San Miguel Global Power is eyeing to complete this year one of the largest integrated battery storage networks in the world – a total of 32 battery storage stations that will have a combined capacity of 1,000 megawatts (MW).

A battery energy storage system can be used to bridge the energy security gap by storing excess energy when it is available, and releasing it when demand is high.

The company is also targeting to reintegrate to the national grid by May 26 its 1,200-MW Ilijan natural gas plant, which will help boost supply amid the projected high demand in the summer months and in the coming years.

The Ilijan plant, which has historically contributed up to 10 percent of Luzon’s net reliable capacity, has been on extended outage since June last year and is undergoing  retrofitting works in the meantime.

Its reopening will be made possible as San Miguel Global Power recently took delivery of the country’s first-ever liquefied natural gas cargo that will fuel the power facility.