SMC Global Power raised $300-million capital bonds

by Lenie Lectura, 20 August 2015
for BusinessMirror

SMC Global Power Holdings, the power arm of conglomerate San Miguel Corp., on Thursday reported that it raised $300 million via a US dollar-denominated perpetual subordinated capital bond offering.

It said in a disclosure to the stock exchange that it “priced an issuance of Reg S, Unrated perpetual non-Call 5.5 years $300 million.”

“Following investors’ meetings in Singapore and Hong Kong, as well as calls with investors in London, the SMC Global Power launched and subsequently priced the deal at 6.75 percent. Final allocations saw the majority of the deal distributed into Asia at 87 percent, with European investors taking the remaining 13 percent,” the conglomerate said.

Proceeds from the transaction will be used to finance investments in power-related assets, including its greenfield power projects and general corporate purposes.

The conglomerate earlier told the Philippine Stock Exchange (PSE) that SMC Global tapped ANZ, Bank of America Merrill Lynch, DBS Bank Ltd., Deutsche Bank, HSBC, ING, Mizuho Securities and UBS for the transaction as joint lead managers and bookrunners.

SMC Global earlier planned to raise as much as $1 billion from a stock-offering debut and sale of a 49-percent stake to cornerstone investors.

SMC Global Power is one of the largest power producers in the country. It was awarded independent power producer administrator contracts for the 1,000-megawatt (MW) Sual coal power plant owned by Team Energy; 1,200-MW Ilijan power plant in Batangas owned by Kepco; and the 345-MW San Roque power plant.

It also won the contract to rehabilitate and operate Albay Electric Cooperative.