SMC boosts LNG initiatives

MANILA, Philippines — SMC Global Power Holdings Corp., the power unit of San Miguel Corp. (SMC), will issue up to $300 million worth of perpetual capital securities, proceeds of which will be used for its liquefied natural gas (LNG) initiatives.

The company said its board has approved the issuance of up to $300 million in undated senior perpetual capital securities, which will be listed on the Singapore Exchange Securities Trading Ltd.

In January, the company raised $600 million from the issuance of senior perpetual capital securities in Singapore with an initial rate of distribution of 5.7 percent per annum.

SMC Global is in advanced stages of executing the binding terminal use agreement term sheet for the proposed LNG terminal in Batangas, with AG&P to provide receiving, storage and regasification services to the Ilijan Power Plant.

“The planned Ilijan LNG Terminal will be developed by AG&P LNG Terminals and Logistics, with EPC (engineering, procurement and construction) work handled by AG&P Construction Solutions,” SMC Global said earlier.

SMC Global said it has negotiated “priority status” for the Ilijan LNG Terminal over all projects of AG&P LNG projects.

“As the foundation customers, SMC’s power plants will also be the priority terminal users for the terminal and its capacity,” it added.

The company added that the terminal is planned to be commercially operational by June 2022, in time for the expiration of the Ilijan IPPA.

SMC Global, through its subsidiary South Premiere Power Corp., is the independent power producer-administrator (IPPA) of the Ilijan plant output.

In the first half this year, SMC Global posted a 25 percent growth in net income to P9.06 billion, from P7.26 billion in the same period last year.