Alsons Consolidated Resources Inc. (ACR) of the Alcantara Group has raised P620 million from the issuance of commercial paper, proceeds from which will fund new renewable energy ventures.
In a disclosure, ACR said the commercial papers were listed on the Philippine Dealing and Exchange Corp. (PDEx), representing the first tranche of its P3-billion commercial paper program.
The Securities and Exchange Commission had given ACR the permit to sell 182-day and 364-day commercial papers at an interest rate of 6.3328 percent and 7.1265 percent per annum, respectively.
“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 (commercial paper) issuances,” said ACR chair and president Nicasio Alcantara.
The P3-billion commercial paper program is Alsons’ third since it started using this funding scheme in 2018. CP refers to debt paper that matures in one year or less, as distinguished from bonds that mature in more than a year.
For this transaction, Alsons commissioned MIB Capital Corp. as the financial advisor, SB Capital Investment Corp. as the underwriter and issue manager and Acuña & Francisco Law as transaction counsel. It likewise tapped AB Capital and Investment Corp.-Trust Investment Division as faculty agent and the Philippine Depository and Trust Corp. as the registrar and paying agent.
Credit rating
Local debt watchdog Philippine Rating Services Corp. (PhilRatings) previously upgraded ACR’s credit rating from “PRS A plus” to “PRS Aa minus,” suggesting that it “has a strong capacity to meet its financial commitments relative to other Philippine corporates.”
PhilRatings factored in ACR’s planned expansion projects that would diversify its generation mix and its ability to establish joint ventures with strong partners for particular projects.
ACR, which supplies electricity to more than 8 million people in 14 cities and 11 provinces in Mindanao, currently has four power plants in Mindanao with a total capacity of 468 megawatts (MW).
In the next few years, the power company is focusing on renewable energy capacity, starting off with the development of eight run-of-river hydroelectric power facilities. These include the 14.5-MW Siguil Hydro power plant in Maasim, Sarangani, whose commercial operations will begin next year. INQ