AES Corp. said March 20 that it completed the sale of a 51% equity interest in its Philippines subsidiary to SMC Global Power Holdings Corp. for $1.05 billion.
Under the deal, AES divested its stake in Masin-AES Pte. Ltd., which owns the operating 630-MW Masinloc coal-fired power plant, the under-construction, 335-MW Masinloc 2 coal-fired facility and the operational 10-MW Masinloc energy storage project, according to a news release.
AES plans to use proceeds from the sale of its Philippines assets to retire its recently tendered $700 million of 5.5% senior notes due 2024 and 5.5% senior notes due 2025, and to retire approximately $250 million of other parent debt. S&P Global Ratings upgraded AES on March 16, as the company executes its plan to accelerate debt reduction with proceeds from asset sales.
AES, through this transaction, expects to achieve investment-grade metrics by 2019.
SMC is a subsidiary of San Miguel Corp.
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