SMC Global Power Holdings Corp. (SMCGP) is raising $100 million from the issuance of additional senior perpetual capital securities to finance its proposed 1,313 megawatt (MW) combined cycle power plant in Batangas.
Its board approved on Wednesday the issuance of additional securities of at least $100 million or an amount as management may determine, subject to prevailing market conditions.
“The additional securities shall be consolidated and form a single series with the existing $600,000,000.00 senior perpetual capital securities issued on June 9, 2021. It will be constituted by a supplemental trust deed, which shall supplement the trust deed of the original securities, and listed in the Singapore Exchange Securities Trading Limited,” it said in a filing.
The proceeds of the additional securities, the company said, will be used “primarily for investments in the 1,313.1MW Batangas Combined Cycle Power Plant and related assets or for general corporate purposes.”
Standard Chartered Bank and Mizuho Securities Asia Limited were tapped as joint lead managers for the issuance of the additional securities.
Excellent Energy Resources Inc. (EERI), a subsidiary of SMC Global, will also put up a 1,200MW combined cycle power plant in Ilijan, Batangas. The output of the plant will be supplied to the Manila Electric Co. after the EERI won a competitive auction for a 20-year power supply agreement with the utility firm. The power facility will be ready by November 2024.
SMC Global Power, the power unit of conglomerate San Miguel Corp. (SMC), said it plans to build solar power facilities in combination with battery energy storage systems (BESS) facilities. Commercial operations of the facilities may start in 2023.
The company has earmarked $1 billion for the construction of 31 BESS with a capacity of 1,000MW.
SMC President Ramon S. Ang said the power firm is moving away from building new coal power facilities, despite new technologies that make them cleaner.
“It’s a company direction that is in line with all the major sustainability initiatives we have undertaken these past couple of years,” Ang said.
The direction for SMCGP it to add more renewables into its power portfolio utilizing technologies that will significantly cut its carbon footprint while continuously addressing the country’s need for reliable and affordable power.
