Thursday, January 20, 2011

SMC power unit to tap foreign bond market

Manila Times.net


THE power unit of the Philippines’ largest food and beverage firm has tapped the overseas bond market to finance investments in energy-related assets and debt payments. 

In a disclosure to the Philippine Stock Exchange, San Miguel Corp. (SMC) said its wholly owned subsidiary, SMC Global Power Holdings Corp., will issue five-year benchmarked-sized dollar bonds.

SMC Global Power has also mandated ANZ, HSBC and Standard Chartered Bank as joint bookrunners and joint lead managers for the proposed offering.

The company has filed an application to list the bonds in the Singapore Exchange Securities Trading Ltd.

The firm was reportedly planning a bond sale within the month, with size ranging from $250 million to $500 million.

SMC Global Power said it would double its power generating capacity to over 6,000 megawatts over the next five years by building new coal-fired plants.

The company would also allocate funds for the payment or prepayment of obligations to Power Sector Assets and Liabilities Management Corp.

SMC has been moving away from its stable food, beverage and packaging businesses and has expanded to heavy industries such as energy, infrastructure, telecommunications and mining.

SMC’s profit grew 67 percent to P12.7 billion in the first nine months of 2010 because of the robust growth of its core businesses.
Its stocks rose from P169.90 on Tuesday to P169.90 each on Wednesday. 

Krista Angela M. Montealegre

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