San Miguel Global Power Holdings Corporation (SMGP) is aiming to pull up USD 300 million in the offshore bond market to fund its solar energy projects.
Philippine Star reported that in a recent disclosure to the Philippine Dealing & Exchange Corporation, SMGP said its board of directors has already greenlit the issuance of US dollar-denominated senior perpetual capital securities.
These securities will be listed on the Singapore Exchange Securities Trading Ltd., although the offering remains contingent on favorable market conditions.
The funds raised will be allocated specifically to cover the pre-development costs associated with SMGP’s solar energy initiatives. The company also cleared that none of the proceeds will be used to finance any of its existing or planned coal-fired power plants.
SMGP has enlisted Australia and New Zealand Banking Group Ltd., DBS Bank Ltd., Mizuho Securities Asia Ltd., and Standard Chartered Bank as joint lead managers for the offering.
Additionally, DB Trustees (Hong Kong) Ltd. will act as the transaction’s trustee, with Latham and Watkins serving as the listing agent, and Deutsche Bank AG’s Hong Kong branch fulfilling roles as the registrar and paying, calculation, and transfer agent.
The board has also authorized SMGP’s management to finalize the offer’s terms and conditions, including the securities’ distribution rate and the issuance timing. However, the company has yet to disclose the exact timeline for this planned offer.
SMGP raised a total of USD 1.22 billion through similar issuances in November 2019 and October 2020.
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