MANILA, Philippines - Alsons Consolidated Resources Inc. of the Alcantara Group is raising up to P2.5 billion from the issuance of short term commercial papers (STCPs) to support operations and bankroll power projects in Mindanao.
Alsons disclosed yesterday its board cleared the issuance of STCPs worth up to P2.5 billion to be issued in multiple tranches.
It said the initial tranche, which will have a value of up to P500 million, will be issued within 2016 or early 2017. The first tranche will have tenors of 90, 180 and 360 days.
Meanwhile, the succeeding tranches will be issued in 2017 and 2018 amounting up to P1 billion per year.
Alsons said proceeds of the issuance will be used “to fund its working capital requirements and other general corporate purposes including operations of the company’s power projects in Mindanao.”
The company was also authorized by its board to tap the services of Multinational Investment Bancorporation as sole underwriter and AB Capital and Investment Corp.–Trust and Investments Division as facility agent for the issuance.
For the initial tranche of the STCP, Alsons received an issuer credit rating of PRS Aa, the second highest rating category on Philippine Rating Services Corp.’s existing credit rating scale.
Among the factors cited by PhilRatings as basis for the rating were the company’s “robust revenue generating capability” and its “ability to establish joint ventures with strong partners for particular projects.”
Alsons currently operates four power facilities generating a combined capacity of 363 megawatts (MW) serving over eight million people in 13 cities and eight provinces.
Just this year, the company added 105 MW to Mindanao’s power supply with the operation of the first section of the 2x105-MW Sarangani Energy Corp. (SEC) baseload power plant located in Maasim, Sarangani.
The SEC plant’s second 105 MW section is expected to begin the initial stages of construction later this year and is targeting to go full into full blast construction by early 2017.
In total, the SEC project has a cost of $570 million, the single largest power investment in Sarangani Province and the entire Region 12.
In the second half of 2017, Alsons will commence construction of the 105 MW San Ramon Power Inc. baseload coal-fired power facility in Zamboanga City. — With Zinnia dela Peña