Alsons lists P694 Million Commercial Paper
Alsons Consolidated Resources, Inc. (ACR) – the publicly-listed company of the Alcantara Group, recently re-issued ₱694 million from the first ₱1.5 billion tranche of the company’s Commercial Paper (CP) issuance with the Philippine Dealing and Exchange Corporation (PDEx). This will provide interim funding to help the company’s expansion into the renewable energy (RE)sphere.
ACR – Mindanao’s first private sector power generator currently has a portfolio of four power facilities in Mindanao with an aggregate capacity of 468 megawatts (MW) serving over eight million people in 14 cities and 11 provinces including key urban centers such as Cagayan de Oro, General Santos, Iligan, and Zamboanga City.
The company is currently building a ₱4.5 billion 14.5 megawatt (MW) run-of -river hydroelectric power plant at the Siguil River basin in Maasim, Sarangani Province. The Siguil Hydro power plant is expected to begin commercial operations in 2022 and will provide power to Sarangani Province, General Santos City and key municipalities of South Cotabato.
The Siguil Hydro power plant, ACR’s initial RE foray, will be the first of eight run-of-river hydroelectric power facilities that the company plans to develop in various areas in Mindanao, and Negros Occidental in Western Visayas. The next two hydroelectric power facilities in the group’s pipeline are the 38 MW Sindangan Hydro plant in Zamboanga del Norte and the 42 MW Bago Hydro plant in Negros Occidental. Once completed and operational these eight hydro power plants will constitute the bulk of the company’s power facilities.
ACR’s Commercial Papers issuance had earlier received PRS A plus (corp.) with a Stable Outlook” issuer credit rating from the Philippine Rating Services Corporation (PhilRatings) which cited ACR’s “above average capacity to meet its financial commitments relative to other Philippine corporates”, “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.” The “Stable Outlook” given to the ACR Commercial Paper issuance is assigned when a rating is likely to be maintained or to remain unchanged in the next twelve months.
“We are happy to once again tap the short-term capital market for our working capital needs,” said ACR Chief Financial Officer Robert F. Yenko. “These are exciting times ahead for ACR as we begin to focus on building up our RE portfolio and this facility will greatly help us in these efforts,” he added.