Alsons Consolidated Resources Inc. will issue debt notes worth P6 billion to refinance old debt.
Alsons disclosed to the Philippine Stock Exchange on Tuesday the notes would have five-year and seven-year tranches, and appointed Development Bank of the Philippines as lead arranger of the transaction.
“The proceeds from the issuance of such notes will be used to refinance the outstanding principal balance of the company’s existing peso denominated fixed rate notes and to partially finance ACR’s investments in renewable energy projects,” Alsons said.
Alsons executive vice president Tirso Santillan Jr. said the refinancing aimed to bring down interest rate and prolong the maturity of the notes.
Alsons will use proceeds from the new note issuance to partially refinance the balance of the company’s fixed rate notes of P7.5 billion from 2015 and fund renewable energy expansion projects.