The SMC Global Power Holdings Corp. has secured funding arrangements that will finance its acquisition of the Masinloc plant.
The company disclosed that it will subscribe to a $650-million redeemable perpetual securities to be issued by SMC Global.
It will be also “used to partially finance the acquisition of the Masinloc power assets.”
In December last year, SMC Global inked a deal with AES owners and took over the Masinloc power plants for around $1.9 billion.
Last January, the Philippine Competition Commission (PCC) gave the goal signal on the acquisition of shares in Masin-AES Pte. Ltd., AES Transpower Pte. Ltd. and AES Philippines Inc. to add in its power generation and retail electricity portfolio.
SMC power got 51 percent and 49 percent equity interests of AES Phil Investment Pte. Ltd. and Gen Plus B.V respectively.
Meanwhile, in Masin-AES, the company attained 100 percent equity interest of AES Corp. in AES Transpower and 100 percent stake of AES Phil in AES Philippines.
AES Philippines owns Masinloc coal-fired thermal plant and the Masinloc Battey in Zambales and Kabankalan Battery Storage System in Kabankalan, Negros Occidental.
The said power facilities will add to SMC Global’s portfolio in the power generation market.
It joins the Sual Power Plant in Sual, Pangasinan, San Roque Hydroelectric Multipurpose Power Project in San Manuel Pangasinan, Ilijan Power plant in Ilijan, Batangas; Limay Greenfield Clean Coal Plant in Limay, Bataan; Angat Hydroelectric Power Plant in Angat, Bulacan; and the Greenfield Power plants in Malita Davao del Sur, and Limay, Bataan.