SMC unit to raise $500 million for battery storage projects

By Lenie Lectura -January 8, 2020
from Business Mirror

Photo shows a greenfield power plant of SMC Global Power which uses clean combustion technologies.

The power unit of San Miguel Corp. (SMC) is raising $500 million from the issuance of senior perpetual capital securities to fund its battery energy storage (BES) projects.

“The Board of Directors of SMC Global Power Holdings Corp. authorized the issuance of up to $500 million in undated senior perpetual capital securities or such amount as management may later determine, based on prevailing market conditions and as maybe advantageous to the corporation,” SMC Global Power said Tuesday.

The amount will be utilized for its planned BES projects and for general corporate purposes, it added.

The company has tapped Credit Suisse Ltd., DBS Bank Ltd., J.P. Morgan Securities, Mizuho Securities Asia Ltd., Standard Chartered Bank and UBS AG Singapore as joint lead managers.

Last year, SMC’s Limay Power Generation Corp. sought the green light to conduct grid impact study for its planned 21 BES projects, each with a capacity of 20 megawatts (MW).

A clearance for the conduct of a grid impact study is necessary for a power firm before it can proceed with the construction of its power project.

BES can store energy via use of a battery technology for use at a later time.

In April 2019, the company listed with the Philippine Dealing and Exchange Corp. P30 billion worth of fixed-rate bonds. The proceeds of this funded the power firm’s expansion projects.

SMC Global Power General Manager Elenita Go  said proceeds will be utilized to finance the power firm’s expansion projects. “We have many expansion projects. It’s hard to tell at this point what these expansion projects are.”

Established in 2008, SMC Global Power Holdings is now one of the largest power companies in the Philippines with a diversified portfolio utilizing a mix of coal, natural gas and hydroelectric power plants.

Its total capacity is 2,903 MW representing 22 percent of the Luzon grid and 17 percent of the national grid. These power assets are under Independent Power Producer Administrators Agreements with PSALM, or are under joint-venture agreements and are classified as Independent Power Producers.

It operates the 218-MW Angat hydroelectric power plant in Bulacan; the 450-MW greenfield power plant in Limay, Bataan; the 300-MW greenfield power plant in Malita, Davao Occidental; and the 684-MW Masinloc power-generating facility in Masinloc, Zambales.

Image Credits: Web site of SMC Global Power