Alsons offers IOUs worth P1.15B to fund expansion

MANILA  -Alcantara-led Alsons Consolidated Resources Inc. is issuing P1.15 billion worth of commercial paper after securing approval from the Securities and Exchange Commission (SEC).

In a stock exchange disclosure on Wednesday, Alsons said the amount represented the third tranche of its P3-billion commercial paper program intended to help build the company’s renewable energy portfolio in Mindanao.

Commercial paper refers to short-term debt securities issued by corporations to raise capital quickly.  These are sold to investors looking for short-term investments with low risk.

The company listed P620 million with the Philippine Dealing and Exchange Corp. in December for the first tranche. The company raised an additional P1.38 billion in June this year.

Alsons chief executive and executive vice president Tirso Santillan previously said the company was “deliberately moving” into renewable energy for capacity expansion as it gradually shifts away from fossil fuels.

The company currently has four fossil fuel-based facilities in Mindanao with a combined capacity of 468 megawatts (MW).

In line with its renewable energy expansion plans, Alsons aims to complete a number of hydroelectric and solar projects “over the next few years.” These include the 14.5-MW Siguil hydro power plant in Sarangani province and a 37.7-MW hybrid hydro-solar power project in Zamboanga del Norte province.

The company is also expanding to the Visayas market through a planned 42-MW hydroelectric plant in Negros Occidental province. INQ