• SMC eyes P15-B retail bond issue


    SMC Global Power Holdings Corp., the power producer unit of Conglomerate San Miguel Corp., is eyeing to tap the debt market by offering P15 billion worth of retail bonds, the proceeds of which will primarily be used for the settlement of its maturing obligations.

    The company, in its registration statement before the Securities and Exchange Commission, is seeking approval of its proposed P15-billion bond offering, which will be listed in the Philippine Dealing & Exchange Inc.

    The tenors of the fixed-income debt papers would be offered for five, seven, and 10 years.

    The status of the bonds when floated, the company said, “Shall constitute the direct, unconditional, unsubordinated and unsecured obligations of SMC Global Power and shall at all times rank pari passu [on equal footing]and ratably without any preference or priority amongst themselves and at least pari passu with all other present and future unsubordinated and unsecured obligations of the company, other than obligations preferred by law.”

    The net proceeds of the bond offering, SMC Global Power said, is primarily intended for the settlement of its maturing short-term loan from creditor BDO Unibank Inc. worth $300 million, while the remainder will be used for general corporate purposes as well as payment of tax liabilities.

    For the undertaking, the company has asked nine financial institutions to serve as underwriters, including BDO Capital & Investment Corp., BPI Capital Corp., Chinabank Capital, Maybank ATR Kim Eng, PNB Capital, RCBC Capital, SB Capital, Standard Chartered and UCPB.

    The form and denomination of bonds to be offered will be in a minimum amount of P50,000 each, and in integral multiples of P10,000 thereafter.

    SMC Global Power is one of the largest power companies in the country, having 2,903 megawatts of combined contracted capacity as of end-last year.

    As of end-2015, it had a 17 percent market share of the power supply of the national grid and 22 percent of the Luzon grid.


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