SMC Global Power Holdings Corp. listed its P40-billion fixed-rate bonds on Philippine Dealing and Exchange Corp. Tuesday, the largest corporate bond issuance to date.
The listing followed strong demand from investors and confidence in SMCGP’s ability to continue providing reliable power nationwide, while helping push the country toward a clean energy future.
SMCGP is a unit of conglomerate San Miguel Corp., which operates around 4,714 megawatts of combined capacity as of end-2021 from a diversified power portfolio, including natural gas, coal and renewable energy, such as hydropower and recently battery energy storage systems.
SMCGP initially aimed to raise P30 billion, but strong investor interest prompted the company to exercise its oversubscription option for another P10 billion.
The bonds comprise the first tranche of SMCGP’s P60-billion shelf-registered peso retail bonds consisting of Series K Bonds, with an interest rate of 5.9077 percent per annum due 2025; Series L Bonds at 7.1051 percent p.a. Due 2028; and Series M Bonds at 8.0288 percent due 2032.
“The funds provided by these bonds come at an opportune time as we continue with our commitment to provide the country with reliable power supply amidst present challenges in the global fuel market,” said SMC president and chief executive Ramon Ang.
Ang said despite the high global fuel cost and supply woes brought on by the conflict between Russia and Ukraine, SMC’s power unit remained on track with plans to minimize the country’s dependence on coal as part of the conglomerate’s larger sustainability goals.
“SMC Global Power fully supports the government’s thrust in powering the nation as we continue to pursue business and expansion strategies that are aligned with our national and regional energy policies and needs―demonstrating our commitment to conduct business operations in a socially and environmentally responsible manner,” Ang said.
Ang said SMC and its operating units were working on a group-wide sustainability roadmap that would include major targets for its power business to achieve a sustainable energy future.
“Right now, we’re facing an unprecedented situation, but even as we work to maintain reliable and sufficient supply throughout this crisis, we are also very much focused on continuing our transition to cleaner and renewable fuel sources without compromising on supply, quality, and affordability,” Ang said.
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