SMC GLOBAL POWER RAISED ADDITIONAL FUNDS FROM SECURITIES | Marvin Germo

SMC GLOBAL POWER RAISED ADDITIONAL FUNDS FROM SECURITIES

By: Marvin Germo | July 5, 2019

$300 Million From Securities

SMC Global Power Holding, Inc., the power generation arm of San Miguel Corporation (SMC) was able to raise a total of $300 million from its senior perpetual capital securities. As disclosed by the firm, these securities will be listed in the Singaporean Exchange. The $300 million funds are only added to the $500 million funds raised from the issuance of senior perpetual securities last April 25. And as of now, the company has outstanding securities worth $800 million altogether. It’s such good news that SMC Global Power is going global. For investors who want to know more about the said listing of its securities, here’s additional information for you.

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Approval From SGX-ST

San Miguel Global Power was able to partner up with Merrill Lynch (Singapore) Pte. Ltd., Credit Suisse (Hongkong) Limited and UBS AG Singapore branches who will then act as the joint lead managers for these securities. The firm noted that the approval to list and quote its shares from Singapore Exchange Securities Trading Limited (SGX-ST) has already been secured. So, these additional securities are out in the official list on July 04, 2019. If you are currently investing in SMC, you might want to try investing and trading the shares of San Miguel Global Power as well as they have a positive outlook in the coming years now that they are gearing towards the improvement of electric supply in the Philippines.

Use Of Proceeds

Basically, the proceeds will be used for corporate purposes in general. It will be used to invest in power-related assets and to refinance the current debts of the firm. The company has recently accumulated capacity of 4,197 megawatts (MW) from a mixture of hydropower sources, natural gas, and coal. This accounts for a quarter of Luzon grid’s power supply and 19% of the national grid. According to the company’s portfolio, it has a 218-MW Angat Hydroelectric power plant located in Bulacan, 300-MW greenfield power plant in Davao Oriental, 450-MW greenfield power plant in Bataan, and 684-MW Masinloc Power Generating Facility in Zambales. Should the company acquire more proceeds, more power assets will be constructed or bought.

SMC Global Power Net Income

In 2018, SMC’s unit power has generated an operating income of P33.17 billion, which is considerably 37% higher than last year. This is followed by a 45% hike or P120.10 billion in consolidated revenues during 2018. The firm had noted that the volume consumed grew by 39% because of the extra power generated from its plants in Mansiloc, Limay, Malita, San Roque, and Ilijan. Meanwhile, during the first quarter of 2019, the operating income of the firm went up by 23% or P9.8 billion while the consolidated revenues were up by 41% or P34.7 billion.

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