San Miguel Global Power to sell $100-M perpetual notes
By Lenie Lectura – September 25, 2024
from Business Mirror
SMC Global Power Holdings Corp. has secured board approval to issue $100 million in senior perpetual capital securities.
The power arm of conglomerate San Miguel Corp. (SMC) said the issuance will be listed on the Singapore Exchange Securities Trading Ltd. Proceeds will fund the pre-development costs of solar energy projects and battery energy storage projects.
“On September 23, 2024, the Board of Directors of the Corporation approved the offer and issuance of additional Senior Perpetual Capital Securities, with an aggregate principal amount of at least $100 million or such other amount as may be advantageous to the Corporation, subject to prevailing market conditions and as may be advantageous to the Corporation,” San Miguel Global Power told the Philippine Dealing and Exchange Corp. on Tuesday.
This is on top of the recently approved issuance of up to $300 million.
For the issuance of additional securities, San Miguel Global Power has tapped Standard Chartered Bank as sole lead manager.
The power firm is currently putting up 32 battery energy storage system (BESS) nationwide, with a total capacity of 1,000 megawatts.
BESS enables the storage of energy both from renewable and non-renewable sources.
For solar, San Miguel Global Power earlier teamed up with Citicore Renewable Energy Corp. (CREC) to develop a 153.5MW solar power plant project in Mariveles, Bataan.
Both firms intend to subscribe to a special purpose entity where CREC will initially own 49 percent and San Miguel Global Power will own 51 percent of its total issued and subscribed capital stock.
The deal is subject to regulatory approvals.
Upon reaching the construction phase, CREC shall subscribe to additional shares, resulting in an ownership split of 50 percent each between the two firms. The special purpose entity’s Board shall consist of six directors, where each of the parties shall be entitled to nominate three directors each.
