San Miguel power arm's dollar bond issue oversubscribed - IFR

MANILA, April 30 Tue Apr 29, 2014 11:27pm EDT

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MANILA, April 30 (Reuters) - Philippine conglomerate San Miguel Corp's power unit drew a final order book of $1 billion for its perpetual bond issue, more than three times its offer, IFR reported on Wednesday.

SMC Global Power Holdings Corp offered $300 million worth of 5.5-year perpetual bonds priced at par to yield 7.50 percent, said IFR, a Thomson Reuters unit.

Fund managers bought 47 percent of the bonds, while 42 percent went to private banks, 8 percent to banks and 3 percent to insurance companies, IFR said.

Asian investors bought 86 percent of the bonds and Europeans purchased the rest.

Bank of America Merrill Lynch, Credit Suisse, DBS Bank, Deutsche Bank, HSBC, Mizuho Securities and Standard Chartered Bank managed the issue.

San Miguel was previously looking to raise about $1 billion from the sale of a 49 percent stake in SMC Global, the Philippines' biggest power producer, to cornerstone investors and via an initial public offering.

The planned IPO was shelved several times due to unfavourable market conditions, but San Miguel President Ramon Ang in January said he wanted the offer launched this year.

Last September, San Miguel said it had shelved SMC Global's IPO and would instead seek to raise $700 million from the debt market to fund expansion.

SMC Global had sought funding for two coal-fired power plant projects with a combined generation capacity of 600 megawatts. (Reporting by Neha D'Silva of IFR in Hong Kong and Erik dela Cruz in Manila; Editing by Richard Borsuk)

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