Alsons lists P 2.5B CPs at PDEx
Alsons Consolidated Resources, Inc. (ACR) today listed an initial P100 million of the company’s P2.5 billion Commercial Papers with the Philippine Dealing and Exchange Corporation (PDEx) to provide interim funding that will help the company’s foray into the renewable energy (RE) sphere.
Proceeds from the CP issuance will be used to partially fund the development of the company’s P4.25 billion run-of-river hydroelectric power project at the Siguil River basin in Maasim, Sarangani Province, – ACR’s initial entry in RE. The planned 15.1-megawatt (MW) Siguil plant is expected to begin commercial operations in 2021 and will provide power to Sarangani Province, General Santos City and key municipalities of South Cotabato
The publicly listed company of the Alcantara Group also plans to pursue additional run-of-river hydroelectric power projects in Negros Occidental, Sarangani, Davao Oriental, Zamboanga del Norte, the two Agusan Provinces, and Surigao del Sur. Together with the Siguil plant, these projects have a total hydro capacity potential totaling more than 145 megawatts.
At a ceremony marking the listing at the PDEx office, ACR Executive Vice President and Alsons Power CEO Tirso G. Santillan, Jr. said, the ceremonial listing “is a high point in our efforts to tap the short-term capital market for our working capital needs.”
“We’re looking to add up to 145 megawatts of renewable energy from the eight run-of-river hydro power facilities that we will be developing in various locations in Mindanao and Negros Occidental. This facility will give us the ability to bridge the financial requirements of our projects under development, “he added.
Earlier this year, the issuance received a PRS A plus (corp.) issuer credit rating from the Philippine Rating Services Corporation (PhilRatings). This rating means the company has an above average capacity to meet its financial commitments relative to other Philippine corporates. Among the factors cited by PhilRatings as basis for the rating were “the positive growth prospects for Mindanao which will bring about an increasing demand for power,” and ACR’s “ability to establish joint ventures with strong partners for particular projects.
Multinational Investment Bancorporation (MIB) was the sole underwriter and arranger for the issuance while the law firm of Martinez Vergara Gonzalez and Serrano (MVGS) served as the transactional legal counsel.
Aside from the hydro projects, the company is also in the final stages of constructing Section 2 of the 210-megawatt (MW) Sarangani Energy Corp. (SEC) baseload coal-fired power plant in Maasim, Sarangani. The plant is expected to begin commercial operations within the first quarter of 2019. Next year, ACR will also begin constructing the 105 MW San Ramon Power, Inc. (SRPI) baseload coal-fired power plant in Zamboanga City which is targeting to start commercial operations in 2022.