San Miguel Global Power raises $300M from bond market
San Miguel Global Power Holdings Corp. (SMGP) marked a successful return to the overseas debt market after issuing bonds worth $300 million.
In its disclosure to the Philippine Dealing & Exchange Corp. (PDEx) on Wednesday, the company said it issued the senior perpetual capital securities at an initial rate of 8.375 percent per year.
The power generation arm of conglomerate San Miguel Corp. also noted that its plan to list it at the Singapore Exchange Securities Trading Ltd. has secured conditional approval.
The securities are expected to be admitted to the Singaporean bourse on Jan. 21.
In an earlier filing, the group said the new funds would be used to purchase and redeem outstanding senior perpetual capital securities issued on Jan. 21, 2020, These have an initial distribution rate of 5.7 percent.
A slice of the proceeds would also fund its expansion in the renewable energy space, with additional planned solar and hydropower projects.
For SMGP’s goal to scale up its solar portfolio, the firm hopes to have a capacity of 2,670 megawatts (MW) across Luzon and Mindanao. These capacities are expected to come online from 2026 to 2029.
Aside from these facilities, the firm is also increasing its investments in battery energy storage systems (BESS). These would complement its renewable energy push as the technology enables producers to store excess power.
For 2026 alone, SMGP said seven sites will house about 180 megawatt-hours of power storage capacity.
Meanwhile, the company said the proceeds from the latest bonds would not be used for its existing and planned coal-fired power assets and liquified natural gas facilities.
Standard Chartered Bank served as the sole lead manager for this issuance. DB Trustees (Hong Kong) Ltd. was tapped as trustee. Deutsche Bank Aktiengesellschaf, Hong Kong Branch as principal paying agent, calculation agent, transfer agent and registrar.
Latham & Watkins served as the listing agent.
SMGP has been a crucial energy player in the Philippines, with about 5,710 MW of combined capacity. Its portfolio spans across natural gas, coal, renewable energy, including hydroelectric power and BESS technologies.
