Alsons Consolidated Resources Inc. of the Alcantara Group has set the indicative rates for its planned P1.5-billion commercial paper, the first tranche under a P2.5-billion shelf registration program.
ACR said in a filing with the Securities and Exchange Commission it would issue the P1.5-billion commercial paper in three tenors—90 days which will carry a discounted rate of between 4.4979 percent and 5.4979 percent, 180 days with interest rate of between 4.8314 percent and 5.8314 percent and 360 days with interest rate of between 4.9174 percent and 5.9174 percent.
ACR said it would use the net proceeds from the offering to initially fund the development of a 15.1-megawatt hydropower plant in Siguil in Sarangani province worth P1.01 billion. The power plant project, the company’s first renewable energy venture, is expected to start commercial operations by the second half of 2020.
ACR will also use a portion of the proceeds to pay short-term obligations maturing this year worth P374.3 million.
The company will offer the commercial paper to the public at a discount to face value and in tranches through Multinational Investment Bancorporation, the sole issue manager, lead manager, and underwriter.
The commercial paper will be listed with Philippine Dealing & Exchange Corp. ACR has been assigned a credit rating of PRS A-plus by the Philippine Ratings Services Corp.
A company rated PRS A has an above average capacity to meet financial commitments relative to that of other Philippine corporates. However, it is somewhat more susceptible to adverse changes in circumstances and economic conditions than higher-rated corporates.