SMC Global Power raising at least $100M via securities offer

SMC Global Power Holdings Corporation (SMCGP), San Miguel Corporation’s (SMC) power arm, is aiming to raise at least $100 million (around Php5 billion) by offering additional Senior Perpetual Capital Securities primarily to fund a gas plant project.

In a disclosure to the Securities and Exchange Commission on Wednesday, the firm said the amount to be raised would be used as investment for its 1,313.1-megawatt (MW) Batangas Combined-Cycle Power Plant project and for other corporate purposes.

The additional capital, SMCGP said, 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 and would be listed in the Singapore Exchange Securities trading platform.

SMC Global said the offer is subject to prevailing market conditions and as may be advantageous to the company.

Last July, San Miguel said it would develop a 1,300MW liquefied natural gas (LNG) power project in Batangas City, which aims to provide clean and stable power to customers of the Manila Electric Company (MERALCO). The facility, once completed, would provide power at a lower price than that of coal plants.

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.