Alsons Lists PhP1.265B Third Tranche of Commercial Papers with PDEx
Alsons Consolidated Resources, Inc. (ACR) has listed with the Philippine Dealing and Exchange Corporation (PDEx), the third tranche – worth PhP1.265 billion – of the company’s PhP3 billion Commercial Paper (CP) Program.
ACR- the publicly-listed company of the Alcantara Group listed its first tranche of CPs worth PhP1.4 billion in July 2021. The second tranche of CPs worth PhP600 million was listed in November 2021. Proceeds from the issuance will be used primarily for general working capital purposes.
At the listing ceremony, ACR Executive Vice President Tirso G. Santillan, Jr. said, “We at Alsons are now focused on developing several run of river hydroelectric power plants which will be sources of clean, reliable, affordable and renewable energy for the people of Mindanao and the rest of the Southern Philippines. Our commitment to POWER with CARE has been made easier by the opportunity to continue to tap the short-term capital market. For this, we are truly appreciative of our continuing partnership with PDEX.”
In the first quarter of this year, ACR received an issuer credit rating upgrade from the Philippine Rating Services Corporation (PhilRatings) advancing to PRS Aa minus (corp.) from PRS A plus (corp). According to PhilRatings, a company with a PRS Aa rating “has a strong capacity to meet its financial commitments relative to other Philippine corporates.” Among the factors cited by PhilRatings for the upgrade of ACR’s credit rating were: ACR’s “planned expansion projects which will further diversify its generation mix”; “the Company’s ability to establish joint ventures with strong partners for particular projects”; and ACR’s “strong profitability despite the ongoing COVID-19 pandemic.”
ACR is Mindanao’s first private sector power generator providing electricity to over eight million people in 14 cities and 11 provinces in the country’s second largest island. The company currently has a portfolio of four power plants in Mindanao with a total capacity of 468 mega-watts (MW).
ACR is currently constructing a PhP4.5 billion 14.5 MW hydroelectric power plant at the Siguil River basin in Sarangani Province which is expected to begin operating in the second quarter of 2023. The Siguil Hydro Power plant will be the first of eight hydropower facilities that the company plans to develop.