Alsons taps ING for 7.5 Billion-Peso Note Issuance
Alsons Consolidated Resources, Inc. (ACR) – the publicly-listed company of the Alcantara Group, announced that it has entered into an Omnibus Notes Facility and Security Agreement for the issuance of Fixed Rate Corporate Notes in the amount of 7.5 Billion Pesos. The Notes will have 5-year and 7-year tranches and the proceeds from the issuance of such notes will be used to prepay an existing loan facility and to finance its investment in power-related assets. ING Bank N.V., Manila Branch is the Issue Manager and Bookrunner for the transaction.
ACR is Mindanao’s first and most experienced independent power producer. It currently operates the 103 MW diesel power plant of the Mapalad Power Corporation (MPC) in Iligan City, the Southern Philippines Power Corporation’s (SPPC) 55 MW power plant in Alabel, Sarangani, the 100 MW Western Mindanao Power Corporation (WMPC) plant in Zamboanga City. All three diesel plants have significantly contributed to alleviating the power shortage in Mindanao.
ACR is developing coal-fired power facilities to help provide a stable source of baseload power for Mindanao and ensure long-term power security for the island. These facilities are: the 105 MW San Ramon Power, Inc. (SRPI) plant in Zamboanga City and the 210 MW Sarangani Energy Corporation (SEC) plant in Maasim, Sarangani.
The first 105 MW section of the SEC plan is now in the advanced stages of testing and commissioning, and will begin commercial operations in the first quarter of 2016 with an initial capacity of 105 MW. The SEC plant is expected to be operating at its full 210 MW capacity in 2018. The SRPI power facility in Zamboanga City is expected to begin construction in 2016 and is slated to operate by 2019.
ACR is likewise entering the renewable energy sphere with the development of a 15 MW run of river hydroelectric plant along the Siguil River in Maasim, Sarangani. The Siguil plant is targeting to begin construction in 2016. ACR-affiliated power facilities are expected to have a total generating capacity of 588 MW by 2019. The said capacity will fulfill more than 25% of Mindanao’s projected peak demand for that year.
The Alcantara Group, through its other subsidiaries aside from ACR, is also engaged in aquaculture and agribusiness, property development and services. It has been an active player in the economic development of Mindanao and the rest of the Philippines for over 50 years.