SAN MIGUEL Global Power Holdings Corp. (SMGP), the power generation arm of San Miguel Corp. (SMC), is looking to offer up to $150 million in senior perpetual capital securities.
The company’s board of directors has approved the offer and issuance of additional senior perpetual capital securities worth at least $150 million, SMGP told the Philippine Dealing & Exchange Corp. on July 10.
The board appointed Standard Chartered Bank as sole bookrunner and sole dealer manager; DB Trustees (Hong Kong) Limited as trustee; and Deutsche Bank Aktiengesellschaft, Hong Kong Branch as paying agent, calculation agent, transfer agent, and registrar.
It also named Latham & Watkins as listing agent, along with other agents, legal counsel, auditors, and relevant parties as may be necessary for the transactions.
The proposed securities issuance will be listed on the Singapore Exchange Securities Trading Limited (SGX).
Proceeds from the new securities are allocated to cover the costs and expenses related to the company’s exchange offers and the issuance of additional securities.
Any remaining funds will be allocated to the pre-development costs of solar and hydropower energy projects, as well as capital expenditures for battery energy storage system projects.
“For the avoidance of doubt, the net proceeds will not be applied in connection with any of the Corporation’s existing and planned coal-fired power assets and/or liquefied natural gas assets (including, but not limited to, their construction and working capital requirements),” SMGP said.
Meanwhile, SMGP is inviting eligible holders to exchange their US dollar-denominated senior perpetual capital securities issued on Jan. 21 and Oct. 21, 2020, carrying interest rates ranging from 5.7% to 7%, respectively, for new securities to be issued by the company.
SMC, through its power unit, maintains a diversified energy portfolio across conventional and renewable sources. The conglomerate led the country’s power generation sector in 2024, accounting for 22.44% of the national grid. — Sheldeen Joy Talavera