San Miguel Global Power Holdings Corp. (SMGP), the power generation arm of San Miguel Corp., has raised P30 billion from a fixed-rate bond issuance, with an initial P4.5 billion earmarked for hydro and solar projects.
The bond offering consisted of a base amount of P20 billion and an oversubscription option of up to P10 billion, listed on the Philippine Dealing and Exchange Corp. on April 17.
In a regulatory filing, SMGP said nearly P7 billion has been used to refinance debt obligations. Of the remaining funds, approximately P2.71 billion will finance hydro developments, while P1.78 billion will go to solar facilities.
The company's current total capacity stands at 5,710 megawatts, sourced from natural gas, coal, renewables, hydroelectric power, and battery energy storage. SMGP has long-term plans to deploy 2.5 gigawatts of solar projects by 2029 and 2.3 GW of pumped hydro storage and hydro projects between 2028 and 2032.
CreditSights, a unit of Fitch Group, maintained a "market perform" rating on SMGP, citing its favorable contract mix and expanding capacity as buffers against potential energy disruptions from the Middle East conflict. The firm noted that at least 75% of SMGP's power deals include pass-through charges, limiting the impact of higher coal costs.
"We continue to take comfort in SMGP's operations in the defensive Philippine power sector and improving credit outlook supported by capacity additions and new contract tie-ups," CreditSights said.