Alsons to raise P1.2 billion from CPs

MANILA, Philippines — Alcantara-led Alsons Consolidated Resources Inc. (ACR) plans to raise over P1.2 billion from the final tranche of its proposed commercial papers (CP) issuance.

In a disclosure to the Philippine Stock Exchange, ACR said it received the permit from the Securities and Exchange Commission to sell P1.265 billion worth of CPs.

The securities represent the third tranche issuance of the P3-billion CP program of the company approved on June 25.

ACR listed the first tranche of CPs worth P1.4 billion with the Philippine Dealing and Exchange Corp. in July last year while the second tranche amounting to P600 million was listed in November.

During its recent stockholders’ meeting, ACR said it would spend P6 billion to develop three hydropower projects, marking its transition to renewable energy.

These are the 14.5-megawatt (MW) Siguil hydroelectric power plant in Sarangani, the 21-MW Siayan (Sindangan) hydropower plant in Zamboanga del Norte and the 42-MW Bago hydropower plant in Negros Occidental.

The Siguil hydro power plant, which is targeted for completion next year, will be the first of eight hydropower facilities that ACR plans to develop.

ACR will supply power to the provinces of Sarangani and South Cotabato, General Santos City, and other areas in the Mindanao grid.

It is also working on the 22-MW Siayan (Sindangan) hydro plant in Zamboanga del Norte and the 42-MW Bago hydro plant in Negros Occidental, marking the company’s expansion outside Mindanao.

The company received an issuer credit rating upgrade from the Philippine Rating Services Corp. (PhilRatings) to PRS Aa minus (corp.) from PRS A plus (corp) in relation to its issuance of up to P3 billion CPs.

Among the factors cited by PhilRatings for the upgrade were ACR’s “planned expansion projects which will further diversify its generation mix; the company’s ability to establish joint ventures with strong partners for particular projects; and its strong profitability despite the ongoing COVID-19 pandemic.”

ACR, Mindanao’s first private-sector power generator, has a portfolio of four power facilities with an aggregate capacity of 468 MW serving over eight million people in 14 cities and 11 provinces in the country’s second largest island.