Alsons Consolidated Resources Inc., the listed company of the Alcantara Group, re-issued ₱694 million worth of commercial paper from the first ₱1.5-billion tranche of the company’s issuance registered Philippine Dealing and Exchange Corp.
Alsons said in a statement the issue would provide interim funding to help the company’s expansion into the renewable energy (RE) sphere.
“We are happy to once again tap the short-term capital market for our working capital needs,” said Alsons chief financial officer Robert Yenko.
Alsons’ commercial paper earlier received a PRS A plus (corp.) with a “stable outlook” issuer credit rating from Philippine Rating Services Corp.
PhilRatings cited the company’s “above average capacity to meet its financial commitments, the positive growth prospects for Mindanao which will bring about an increasing demand for power,” and its “ability to establish joint ventures with strong partners for particular projects.”
The stable outlook is assigned when a rating is likely to be maintained or remain unchanged in the next twelve months.
“These are exciting times ahead for ACR as we begin to focus on building up our RE portfolio and this facility will greatly help us in these efforts,” Yenko said.
The company is building a ₱4.5-billion 14.5-megawatt run-of -river hydroelectric power plant at the Siguil River basin in Maasim, Sarangani province.
The Siguil hydro power plant is expected to begin commercial operations in 2022. It will provide power to Sarangani, General Santos City and key municipalities of South Cotabato.
The Siguil power plant, Alsons’ initial RE foray, will be the first of eight run-of-river hydroelectric power facilities that the company plans to develop in several areas in Mindanao, and Negros Occidental in Western Visayas.
The next two hydro power facilities in the group’s pipeline are the 38-MW Sindangan hydro plant in Zamboanga del Norte and the 42-MW Bago facility in Negros Occidental.
Once completed and operational, the eight hydro power plants will constitute the bulk of the company’s power portfolio.
Alsons is also pursuing the 105-MW baseload coal-fired power plant of unit San Ramon Power Inc.in Zamboanga City, which is slated to begin operations in 2023.