The power unit of conglomerate San Miguel Corp. (SMC), SMC Global Power Holdings Corp. (SMCGP), issued $150 million in additional securities with an initial rate of distribution of 5.45 percent per annum.
The company told the Philippine Dealing & Exchange Corp. Thursday that the additional securities are to be admitted to the official list of the Singapore Exchange Securities Trading Ltd.
Proceeds will be used to finance its planned 1,313.1 megawatts (MW) Batangas Combined Cycle Power Plant and other assets.
The liquefied natural gas (LNG) plant, once operational, is envisioned to provide the power requirements of the Manila Electric Co. (Meralco) over the next 20 years, starting 2024. The power facility will be ready by November 2024.
SMC Global’s subsidiary, Excellent Energy Resources Inc., signed a power supply agreement with Meralco. The rates—P4.7450 per kilowatt hour (kWh) and computed all-in levelized cost of electricity of P4.8849 per kWh—are much cheaper compared with coal power facilities, which dominate the country’s power mix.
SMC Global Power is also putting up solar power facilities in combination with battery energy storage systems (BESS) facilities. Commercial operation of the facilities is targeted to start by 2023.
It has earmarked $1 billion to build 31 BESS with a capacity of 1,000MW.
These are all part of the power firm’s plans to boost its renewables portfolio and reduce its carbon footprint while helping address the country’s need for reliable and affordable power, it said.