San Miguel Global Power Holdings Corp. (SMGP) is powering up its subsidiary, Mariveles Power Generation Corp. (MPGC), by facilitating a PHP 50 billion loan to enhance its 600 MW coal-fired power plant in Bataan. The deal, unanimously ratified during a special stockholders’ meeting on April 14, positions Mariveles to strengthen its role in the Philippines’ energy grid amid rising demand and market challenges.
The disclosure to the Philippine Dealing & Exchange Corp. shows stockholders approved the loan, with San Miguel Global Power acting as a guarantor and banks like Asia United Bank Corporation, Bank of Commerce, China Banking Corporation, Development Bank of the Philippines, and Philippine National Bank providing the funds. This loan will help Mariveles improve its operations.
San Miguel Global Power’s hefty bet on Mariveles signals confidence in coal’s near-term reliability but risks clashing with growing environmental pressures. The loan’s scale suggests plans for significant upgrades or expansions, potentially reshaping the plant’s role in the national grid.
Beyond the loan, stockholders also approved increasing the authorized capital stock from PHP 3.77 billion to PHP 7.8 billion, with parent San Miguel Corporation subscribing to PHP 30.33 billion in new shares.
How will San Miguel Global Power’s support for Mariveles’ PHP 50 billion loan shape the Philippines’ energy landscape? Share your views.
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