Alcantaras raising P2.5B for expansion
The Alcantara family’s Alsons Consolidated Resources Inc. (ACR) is planning to raise P2.5 billion through issuance of commercial paper through 2018 to finance its power expansion plans.
The initial tranche involved P500 million, which Philippine Rating Services Corp. gave a rating score of PRS Aa (minus). This rating signaled the company’s “strong capacity to meet its financial commitments” relative to its corporate peers.
Philratings cited positive prospects for Mindanao; ACR’s joint ventures with strong partners; its expansion plans and “strong” revenue generating ability.
It also considered that ACR finalized its debt restructuring terms in 2010 and 2014.
ACR is a holding company with interests in energy, power and real estate. Its core business is largely focused on the power sector, which accounts for almost all of its total revenue in the first half of 2016.
Its power plants are located in Mindanao, consisting mainly of diesel and coal fired power plants. It has some investments in renewable energy.
“The group is proactive in seeking out other potential renewable energy sources which will further diversify its revenue mix,” Philrating said.
ACR has four operating power plants in Mindanao, with a total capacity of about 363 megawatts.
About 211.5 MW are still under construction or development. ACR expects to expand its power capacity further once all of its power plant projects are completed.
The company has also been able to form partnerships with strong corporations, Philratings said.
For its power business, power plants like Western Mindanao Power Corp. (WMPC) and Southern Philippines Power Corp. (SPPC) are joint ventures with AboitizPower (AP) and Toyota Tsusho Corp. (TTC). Its real estate arm, Alsons Land Corp. (ALC), has been able to team up with Ayala Land Inc. (ALI) for the construction of a mixed-use development in Davao City.
In the first half of 2016, consolidated total sales amounted to P3.2 billion, up by 28 percent from P2.5 billion from that for the same period last year.
ACR’s net income for the period saw a 67.6 percent decline to P156.7 million.
