MANILA, Philippines — The Alcantara Group’s Alsons Consolidated Resources Inc. (ACR) successfully raised P620 million from the first tranche of its P3 billion commercial paper program.
Proceeds from the issuance would be used for general working capital requirements, said ACR chairman and president Nicasio Alcantara.
The P620 million was listed at the Philippine Dealing & Exchange Corp., the country’s fixed income exchange.
The Alcantara Group, a major energy player in Mindanao and Visayas, is set to continue expanding with a bigger focus on renewable energy.
“In the coming years, renewable energy will comprise at least half of ACR’s energy portfolio. The steadfast support of partners like you has helped make all this possible, while allowing us as well to provide investors with an attractive alternative investment outlet thru our CP issuances,” Alcantara said.
He said the company’s continuing partnership with PDEx has helped the company strengthen its war chest and continuously provide clean, reliable, affordable and renewable energy for Mindanao and Visayas.
ACR is now focused on building up its renewable energy capacity in the next few years, with around eight run-of-river hydroelectric power facilities in the company’s pipeline.
The first of these hydroelectric power plants is the 14.5 megawatt (MW) Siguil hydro power plant currently under construction in Maasim, Sarangani province, which is targeting to begin operations in 2023.
ACR is Mindanao’s first private sector power generator providing electricity to over eight million people in 14 cities and 11 provinces in the country’s second largest island.
At present, the company has a portfolio of four power plants in Mindanao with a total capacity of 468 MW.
Local debt watcher Philippine Rating Services Corp. (PhilRatings) upgraded ACR’s rating to PRS Aa minus from PRS A plus.
A company with a PRS Aa rating has a strong capacity to meet its financial commitments relative to other Philippine companies, PhilRatings said.
Among the factors cited by PhilRatings for the upgrade of ACR’s credit rating were ACR’s “planned expansion projects which will further diversify its generation mix” and the company’s “ability to establish joint ventures with strong partners for particular projects.”