SMC power unit bolsters hydro, solar portfolio
Ramon Ang-led San Miguel Global Power Holdings Corp. (SMGP) has raised P30 billion from the debt market, with an initial P4.5 billion to be used to beef up its hydro and solar projects.
The power arm of San Miguel Corp. said that the fixed-rate bond issuance was composed of a base offer of P20 billion, with an oversubscription option of up to P10 billion.
The bonds were listed on the Philippine Dealing and Exchange Corp. last April 17.
In a regulatory filing on Friday, it said nearly P7 billion had been disbursed to refinance debt obligations.
About P2.71 billion would also be used to finance its hydro developments. Another P1.78 billion would be released for solar facilities.
SMC’s power generation unit has 5,710 megawatts of combined capacity from its portfolio of natural gas, coal, renewable energy, including hydroelectric power and battery energy storage systems.
It has long-term expansion plans in the renewables market, such as the deployment of 2.5 gigawatts (GW) of solar projects by 2029 and 2.3 GW of pumped hydro storage and hydro projects through 2028 to 2032.
A unit of Fitch Group said that the outlook for SMGP remained “sturdy” as its favorable contract mix and expanding capacity will help offset any impact from energy woes amid the Middle East war.
CreditSights said in a report that it was keeping its “market perform” recommendation on the power unit.
Market performance is a neutral recommendation given by analysts.
“We continue to take comfort in SMGP’s operations in the defensive Philippine power sector and improving credit outlook supported by capacity additions and new contract tie-ups,” it said.
The anticipated higher coal costs due to disrupted exports in the region will not significantly hit SMGP, with CreditSights saying the impact would be “contained” as at least 75 percent of the group’s power deals allow pass-through charges.
