Alsons inks deal for P6-B notes facility

Published November 25, 2020, 12:31 PM

by Myrna M. Velasco

Alcantara-led firm Alsons Consolidated Resources Inc. (ACR) has inked a deal for its programmed P6.0 billion fixed rate corporate notes issuance, the proceeds of which will partly bankroll its renewable energy projects and to refinance existing loans.

The company, in a disclosure to the Philippine Stock Exchange (PSE), said the issue will be of 5-year tranche and 7-year tranche corporate notes.

The Alcantara firm has tapped the Development Bank of the Philippines (DBP) as the mandated lead arranger for the transaction.

“The proceeds from the issuance of such notes will be used to partly 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,” it said.

The company is currently advancing the construction of its 14.5-megawatt Siguil run-of-river hydropower project in Sarangani province, a venture that serves as its jump-off point to targeted higher scale RE installations. This is due for completion in 2022.

Following that, the Alcantara firm will also take off from blueprints seven more hydro projects – including the 22MW Siayan hydropower project to be sited in Zamboanga del Norte; and the 42MW Bago hydropower venture in Negros Occidental.

Beyond the 105-megawatt San Ramon coal-fired power project that the company is pursuing to provide more reliable power supply source for Zamboanga City by 2024, the Alcantara firm indicated that the next wave of projects shall lean predominantly on RE technologies. The San Ramon thermal power project will start construction next year.

As noted by ACR Executive Vice President Tirso G. Santillan, the company’s “continuing pursuit of new power projects in Sarangani province, Zamboanga City, Zamboanga del Norte and Negros Occidental is our contribution to the economic recovery of our country by helping create new jobs and stimulate the local economies in these areas.”

The aggregate capacity of the power generation group of the Alcantara firm currently stands at 468MW; and these facilities have been serving the electricity needs of 14 cities and 11 provinces in Mindanao.

Its major development to-date is the 210-MW Sarangani coal-fired power project which entailed investment of US$570 million, and it’s a venture that also proved to be its main income driver this year amid the challenges posed by the Covid-19 pandemic.