SMC readies P35B bond issue to pay down debt
SMC Global Power, the power generation arm of San Miguel Corp., is issuing up to P35 billion worth of bonds to refinance its outstanding dollar-denominated debt.
In a disclosure to the Philippine Stock Exchange, SMC said the initial tranche of the offering includes P25 billion, registered under a shelf-registration program.
Proceeds from the offering will be used to refinance $400 million worth of debt obligations to minimize foreign exchange losses.
SMC Global Power is one of the country’s largest power companies, controlling 2,903 megawatts of combined contracted capacity as of December 2015. It has diversified fuel sources, including natural gas, coal and hydroelectric.