San Miguel Global Power Corporation (SMGP) is preparing to re-enter the offshore bond market to raise at least USD 100 million for its solar power development projects.
In a recent filing with the Philippine Dealing & Exchange Corporation (PDEx), SMGP announced that its board of directors has approved the issuance of additional perpetual securities.
These securities, which will be listed on the Singapore Exchange Securities Trading Ltd., would finance predevelopment costs associated with solar photovoltaic and battery energy storage initiatives.
The firm added that the final amount to be raised will depend on market conditions, as SMGP strategically times the issuance to maximize benefits for the company.
This fundraising effort follows SMGP’s recent approval for a USD 300 million issuance of perpetual securities in Singapore. In previous years, the company issued USD 492.11 million in November 2019 and USD 723.90 million in October 2020 in senior perpetual capital securities.
In addition, SMGP has partnered with Meralco PowerGen Corp. and Aboitiz Power Corp. for a USD 3.3 billion joint venture aimed at developing the largest liquefied natural gas (LNG) facility in Batangas.
The companies expect to secure approval from the Philippine Competition Commission for the project by the third quarter.
SMGP has enlisted Standard Chartered Bank as the sole lead manager, DB Trustees (Hong Kong) Limited as the trustee, and Deutsche Bank’s Hong Kong branch as the paying, calculation, transfer agent, and registrar. Latham & Watkins will serve as the listing agent for the deal.
SMGP, one of the major energy players in the Philippines, boasts a total capacity of 5,207 megawatts (MW) as of the first half of this year. Its portfolio includes power generation facilities utilizing natural gas, coal, and renewable energy sources such as hydroelectric power and battery energy storage systems.
