MANILA, Philippines - SMC Global Power Holdings Corp., the power generation unit of San Miguel Corp., has issued $300 million worth of 5.5-year perpetual bonds priced at par to yield 7.50 percent.
In a disclosure to the Philippine Stock Exchange yesterday, SMC Global also said the final order hit $1 billion or 3.3 times oversubscribed.
The closing of the issuance is scheduled for May 7, it added.
The company has been raising funds to finance its expansion, aiming to bring its power plant capacity in Mindanao to 1,200 megawatts through a second and third-phase expansion of its coal-fired power plant in Davao.
This would bring SMC Global’s capacity in Davao to 1,200 MW according to documents from the Department of Energy.
In July last year, SMC Global broke ground for the first phase of the plant, comprising of 300 MW, targeted for commissioning in 2015 and 2016 at 150 MW each year.
SMC Global is now working on securing permits and other regulatory requirements for the second phase of the power plant as well as negotiating financing arrangements.
The second phase of 300 MW is targeted for commissioning in December 2018.
For the third phase of 600 MW, SMC has already secured the environmental compliance certificate from the Department of Environment and Natural Resources (DENR) and is now in the process of securing other permits.
The target date for commissioning is December 2019 for 300 MW and December 2020 for 300 MW.
The power plant to be built in Malita, Davao will help balance the power supply differential between northern and southern Mindanao and provide reliable and continuous supply of electricity at a lower cost, the company earlier announced.
The plant aims to help address the growing power crisis in the island, which is currently facing shortages of up to 10 hours, depending on the area. The nearby Visayas region is also facing shortages.
SMC Global said the plant would use locally sourced coal from SMC-owned mines in Mindanao.
In just four years, SMC Global has become one of the largest independent power generation companies in the country, with an installed capacity of 2,545 MW, the company said in its disclosure.
As of end-2012, it already cornered a 17 percent market share of the power supply of the national grid and 23 percent share of the Luzon grid.