The board of SMC Global Power Holdings Corp., the power unit of San Miguel Corporation (SMC), has approved the issuance of up to $300 million in senior perpetual capital securities to be listed in the Singapore exchange. Proceeds will be channeled towards its proposed liquefied natural gas (LNG) terminal in Ilijan, Batangas.
The LNG project is already in the advanced stages of executing the term sheet for its terminal use agreement. Singapore-based LNG engineering firm Atlantic Gulf & Pacific (AG&P) will handle the project’s development and construction, while SMC’s power plants will serve as priority customers. SMC intends to start commercial LNG operations by 2022, which is also when its existing Ilijan Independent Power Producer Administrator (IPPA) contract will expire.
In a disclosure on Tuesday, the company stated that it was given the signal to offer securities for sale by SEC just last week.
133,333,400 Series two preferred shares with an oversubscription option of up to 133,333,267 shares at P75 each is being offered by the Company.
This forms the first tranche of its own shelf registration of up to 533.33 million preferred shares, which it intends to make use of to raise cash for the P734-billion Bulacan airport project and P62.7-billion Metrorail Transit Line 7.
According to earlier disclosures, San Miguel intends to provide the shares before Oct. 19, together with the listing date set on Oct. 29. The business hopes to generate p 19.89 billion in net proceeds from the offering.
San Miguel has tapped BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp., Philippine Commercial Capital Inc., PNB Capital and Investment Corp., RCBC Capital Corp., along with SB Capital Investment Corp. as joint dilemma supervisors, lead underwriters, and bookrunners for the offering.
SMC declared an estimated net loss of P-7.59 billion in the first half a year of 2020, reversing its profit of P13.23 billion final year, due to the consequence of the coronavirus pandemic to its fuel and beer businesses.