SMC Global Power Holdings Corp., the power unit of conglomerate San Miguel Corp., said it has raised $600 million from the issuance of senior perpetual capital securities in Singapore.
“We advise that on January 21, 2020, the corporation issued $600,000,000 Senior Perpetual Capital Securities with an initial rate of distribution of 5.70 percent per annum,” the company said.
It obtained approval from the Singapore Exchange Securities Trading Ltd. for the listing.
The company tapped Credit Suisse Ltd., DBS Bank Ltd., J.P. Morgan Securities, Mizuho Securities Asia Ltd., Standard Chartered Bank and UBS AG Singapore as joint lead managers.
The power unit of SMC said early this month that it was raising $500 million to fund its battery energy storage (BES) projects.
“The Board of Directors of SMC Global Power Holdings Corp. authorized the issuance of up to $500 million in undated senior perpetual capital securities or such amount as management may later determine, based on prevailing market conditions and as maybe advantageous to the corporation,” SMC Global Power had said.
The amount will be utilized for its planned BES projects and for general corporate purposes, it added.
Last year, SMC’s Limay Power Generation Corp. sought the green light to conduct grid impact study for its planned 21 BES projects, each with a capacity of 20 megawatts (MW).
A clearance for the conduct of a grid impact study is necessary for a power firm before it can proceed with the construction of its power project.
BES can store energy via use of a battery technology for use at a later time.
Established in 2008, SMC Global Power Holdings is now one of the largest power companies in the Philippines with a diversified portfolio utilizing a mix of coal, natural gas and hydroelectric power plants.
Its total capacity is 2,903 MW representing 22 percent of the Luzon grid and 17 percent of the national grid. These power assets are under Independent Power Producer Administrators Agreements with PSALM, or are under joint-venture agreements and are classified as Independent Power Producers.