SMC Global Power raises $150M for Batangas LNG plant project


SMC Global Power Holdings, the power arm of San Miguel Corporation (SMC), has raised $150 million (around Php7.49 billion) by issuing additional Senior Perpetual Capital Securities for its liquefied natural gas (LNG) power plant project in Batangas.

Based on SMC Global Power’s disclosure to the Securities and Exchange Commission on Wednesday, the firm said the notes were listed on the Singapore Exchange Securities Trading (SGX-ST) platform on Thursday. The securities had an initial rate of distribution of 5.45% per annum.

According to Investopedia, perpetual bonds — such as senior perpetual capital securities — are fixed income securities with no maturity date and are not redeemable, or cannot be withdrawn. A major advantage, however, is that these regularly give interest payments forever.

Last week, the company said it would raise at least $100 million more through the issuance of additional securities. The additional capital is on top of the $600 million (around Php30 billion) it raised, also via a securities offer in June. Both offers are to form a single series in the SGX-ST.

The net proceeds of the additional securities will be used to fund SMC Global Power’s 1,313.1-megawatt (MW) Batangas Combined Cycle Power Plant project and related assets or for general corporate purposes. 

Last July, San Miguel said it would develop a 1,300MW LNG plant in Batangas City, which aims to serve customer of the Manila Electric Company (MERALCO).

The move is part of the conglomerate’s shift to renewable energy and LNG amid the government’s moratorium on the building of new coal power plants in the country.

SMCGP bagged two contracts from MERALCO’s competitive selection process back in February.