The Securities and Exchange Commission approved the P15-billion fixed rate bond offering of SMC Global Power Holdings Inc., a unit of conglomerate San Miguel Corp.
Informed sources said Tuesday SMC Global planned to push through with the fund raising activity in July.
The bond issue will be the first for SMC Global Power, which earlier planned to conduct an initial public offering.
Data from the SEC showed that SMC Global would issue 5-year bonds worth P5 billion, 7-year bonds worth P5 billion and 10-year bonds worth another P5 billion.
The power company plans to use proceeds from the bond offering to refinance the company’s short term loan extended by BDO Unibank. SMC Global Power borrowed the amount to fully redeem $300 million in notes due 2016 and finance general corporate activities.
The bonds will be listed with the Philippine Dealing & Exchange Corp.
The company hired nine banks to handle the transaction, namely BDO Capital and Investments Corp., Maybank ATR Kim Eng, SB Capital, BPI Capital Corp., PNB Capital Corp., Standard Chartered, China Bank Capital RCBC Capital Corp., and United Coconut Planters Bank.
SMC Global Power is a holding company that owns subsidiaries engaged primarily in generation, supply and sale of power in the country.
Along with its subsidiaries, SMC Global Power is one of the largest power companies in the Philippines with a combined output of 2,903 megawatts as of December 2015. It uses diversified fuel sources, including natural gas, coal and hydroelectric.
SMC Global Power had a 17-percent market share of the power supply in the national grid and 22 percent of the Luzon grid as of end December 2015.
Parent San Miguel in May said it planned to put up more power projects with a combined capacity of 2,100 megawatts and costing $4.2 billion to solidify its hold in the energy sector.
San Miguel president and chief operating officer Ramon Ang said the company planned to build three power plants with a capacity of 300 megawatts in industrial estate projects in Mindanao.
The conglomerate also recently signed two power supply agreements with Manila Electric Co. from two projects.
San Miguel currently is building a 600-MW coal plant in Pagbilao, Quezon under Central Luzon Premiere Power Corp. and another 600-MW plant in Mariveles, Bataan under Mariveles Power Generation Corp.
