SMC power unit to list bond

The power generation subsidiary of San Miguel Corporation (SMC) is scheduled to list today, December 22, its R20billion bond issue in the Philippine Dealing and Exchange Corporation (PDEx).

This will cover Series D bonds that will be due in 2022; Series E bonds due in 2024; and Series F bonds due in 2027, as issued by SMC Global Power Holdings Corp.

As culled from the documents on the “Offer Supplement,” the Series D bonds “shall have a term of five years from the issue date” with a fixed interest rate per annum.

For the Series E bonds, the tenor is for seven years from the issue date; while the Series F bonds will have a term of 10 years.

According to company official sources, proceeds of the bond offer shall be used to “refinance existing debt and for other corporate purposes.”

The joint issue managers in the bond offer have been BDO Capital & Investment Corporation; PNB Capital & Investment Corporation; and Standard Chartered Bank.

The joint lead underwriters and bookrunners are BDO Capital & Investment Corporation, BPI Capital Corporation, China Bank Capital Corporation, PNB Capital and Investment Corporation, RCBC Capital Corporation and Standard Chartered.

This issue is under SMC Global Power’s shelf registration of R35 billion worth of bonds. The offer had been rated PRS Aaa by the Philippine Rating Services Corporation (PhilRatings).

The energy arm of the diversifying San Miguel group is currently the industry’s biggest player – and its portfolio is still constantly growing both with organic expansion on greenfield developments and acquisitions.

The latest on its capacity addition is the 630-megawatt Masinloc coal-fired power facility which is an acquisition from American firm AES Corporation and Thai firm partner EGCO Group.