SMC Global Power Holdings Corp., the energy unit of conglomerate San Miguel Corp., said it will use the proceeds of its P15-billion bonds to pay off its debt.
In its filing before regulators, the company said it hopes to refinance its $300-million outstanding short-term loan it secured with BDO Unibank Inc. in January last year.
The loan falls due on July 25.
The term loan was used to redeem the $300 million worth of notes due this year by the company. That loan carried a 7-percent interest rate. The Securities and Exchange Commission has approved the said bond float application of the conglomerate during its en banc meeting on Tuesday.
SMC Global will issue P5 billion each for its bond that will have a tenor of five, seven and 10 years.
The bonds will be offered at 100-percent face value and will be listed in the Philippine Dealing & Exchange Corp.
The debt will be issued in a minimum denomination of P50,000 and in multiples of P10,000 thereafter.
SMC Global has picked BDO Capital and Investment Corp., BPI Capital Corp., China Bank Capital, May Bank ATR Kim Eng, PNB Capital, RCBC Capital, SB Capital, Standard Chartered Bank and United Coconut Planters Bank as its joint lead managers and bookrunners. VG Cabuag
SMC Global is the largest power producer in the country controlling close to three gigawatts of combined capacity as of last year.