San Miguel power unit issuing P15 B bonds

SMC Global Power Holdings Corp., the power generation subsidiary of diversified conglomerate San Miguel Corp. will issue P15 billion worth of fixed rate bonds.

Based on documents filed with the Securities and Exchange Commission, the bonds will be issued in minimum denominations of P50,000 each.

SMC Global Power will use proceeds from the bond issue to refinance a short-term loan provided by Banco De Oro.

The company secured the loan to fully redeem $300 million in 2016 notes and fund general corporate purposes.

Among the joint issue managers, lead underwriters and book runners for the offering include BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp., Maybank ATR Kim Eng Capital Partners Inc., PNB Capital & Investment Corp., RCBC Capital Corp., SB Capital Investment Corp., Standard Chartered Bank and United Coconut Planters Bank.

As of the end of 2015, SMC Global Power controlled 2,903 megawatts of combined contracted capacity. It currently accounts for 17 percent market share of the power supply of the national grid and a significant 22 percent market share of the Luzon grid.

Its principal activity is the sale of power generated by power plants in the Philippines that are owned and operated by third party independent power producers.