San Miguel Global Power Holdings Corp. (SMGP), the energy arm of conglomerate San Miguel Corp., has tapped a $50 million term loan from a facility agreement with a foreign bank.

Proceeds of the loan will be used by the company to refinance a $50-million three-year term loan drawn in April 2021 that matured in October 2023, as well as to pay for transaction related fees, cost and expenses in relation to the facility agreement.

SMGP said the loan, which will mature in April 2025, is subject to a floating interest rate.

SMGP BESS Power Inc. last month was also able to secure a P40-billion omnibus loan and security agreement with various local banks.

The company has drawn the first tranche amounting to P28 million, which will be used to finance payments for interest, design, construction and the operation of its battery energy storage system (BESS) projects, as well as the purchase of outstanding perpetual securities issued to SMC and reimbursement or repayment of reimbursable advances from SMGP.

SMGP is eyeing to complete one of the largest integrated battery storage networks in the world - a total of 32 battery storage stations that will have a combined capacity of 1,000 megawatts (MW).

According to the company, a significant portion of its BESS capacities have successfully secured ancillary services contracts with a five-year tenor through a competitive selection process (CSP) conducted by the National Grid Corp. of the Philippines (NGCP).

Five BESS facilities located in Bataan, Pangasinan, Cebu and Davao de Oro, have commenced commercial operations in August.

'The remaining BESS capacities are gearing up to participate in the upcoming CSP for additional grid ancillary services requirements of NGCP, as well as for peak power supply applications that will help ensure energy security for the local power industry in the near term,' SMGP said.

SMGP reported a net income of P9.09 billion in the nine months ending September, a significant turnaround from the net loss of P2.64 billion posted in the same period last year which was weighed down by net unrealized foreign exchange losses.

For the nine-month period, the company's revenues fell by 25 percent to P125.21 million due to lower offtake volumes of 17,237 gigawatt hours, 19 percent lower than the offtake volumes in the same period in 2022.

The reduction came following the group's cessation of power supply to Meralco under their 670-MW contract capacity and eventual termination of the said power supply agreement, anchored on a favorable decision from the higher court.

Copyright © 2022 PhilSTAR Daily, Inc Provided by SyndiGate Media Inc. (