The Securities and Exchange Commission approved the application of Alsons Consolidated Resources Inc.of the Alcantara Group to issue up to P2.5 billion worth of commercial papers under a shelf registration program.
Alsons will issue P1.5 billion worth of commercial papers with tenors of 90 days, 180 days and 360 days with a discount rate of 4.86 percent, 5.54 percent and 6.38 percent, respectively, for the first tranche.
The commercial papers will be listed with Philippine Dealing & Exchange Corp.
The company hired Multinational Investment Bancorporation as lead issue manager and lead underwriter of the offering.
Alsons will will use the net proceeds from the fund-raising activity to finance the construction of a run-of-river hydroelectric power plant at the Siguil River basin in Maasim, Sarangani province, and other hydro projects.
It will also use a portion of the proceeds to settle short-term obligations.
The debt notes earlier this year received a PRS A plus (corp.) issuer credit rating from Philippine Rating Services Corp.
The rating means the company has an above average capacity to meet financial commitments relative to other companies.
Among the factors cited by PhilRatings as basis for the rating were “the positive growth prospects for Mindanao which will bring about an increasing demand for power,” and Alsons’ “ability to establish joint ventures with strong partners for particular projects.”
Alsons, Mindanao’s first independent power producer, operates four power plants in the island, generating a combined capacity of 363megawatts and serving over eight million people in 13 cities and eight provinces.
Alsons’ 15.1-megawatt Siguil hydro power plant is expected to begin commercial operations in 2021 and provide electricity to Sarangani, General Santos City and key municipalities of South Cotabato province.
The hydro project marks Alsons entry into the renewable energy space. It plans to pursue additional run-of-river hydroelectric power projects with a combined output of 145 MW in Negros Occidental, Sarangani, Davao Oriental, Zamboanga del Norte, the two Agusan provinces and Surigao del Sur.
