SMC Global allowed to sell $300-M securities

By Jordeene B. Lagare – July 05, 2019
from The Manila Times

SMC Global Power Holdings Corp. has secured the Singapore Stock Exchange’s go-signal to sell additional senior perpetual capital securities worth $300 million beginning this month.

In a July 3 report to the Philippine Dealing & Exchange Corp., the power arm of San Miguel Corp. said it had obtained the Singaporean bourse’s “approval in principle” on the listing and quotation of those securities.

The additional securities are expected to be admitted to the Official List of the SGX-ST on 4 July 2019,” it added.

These securities, issued by SMC Global Power on Wednesday, shall be consolidated to form a single series with the $500-million original securities issued on April 25.

The energy firm commissioned Credit Suisse (Hong Kong) Ltd., Merrill Lynch (Singapore) Pte. Ltd. and UBS AG Singapore Branch as joint lead managers of the securities.

Proceeds have been earmarked “for general corporate purposes, investments in power-related assets and repayment of indebtedness.”

These securities, or debt with no maturity date, have no fixed redemption date.

SMC Global Power has the option to redeem the securities — in whole, but not in part — on the so-called step-up date or any subsequent distribution payment date after giving an irrevocable notice of not fewer than 30 and not more than 60 calendar days.

Distribution payment dates are scheduled on April 25 and October 25 of each year beginning on Oct. 25, 2019. Step-up date is on April 25, 2024.

SMC Global Power, which has a portfolio of coal, natural gas and hydroelectric power plants, has an installed capacity of 4,197 megawatts as March.

It administers three power plants via its independent power producer administration agreements with the Power Sector Assets and Liabilities Management Corp.

These are the 1,000-MW Sual Power Station, a coal-fired plant in Pangasinan province; the 1,200-MW Ilijan Combined-Cycle Power Plant in Batangas province; and the 345-MW San Roque Hydroelectric Multipurpose Power Project, also in Pangasinan.