Alsons secures SEC approval on P2-B CP issuance

Published June 29, 2021, 4:16 PM

by Myrna M. Velasco

Alcantara-led Alsons Consolidated Resources Inc. has secured the approval of the Securities and Exchange Commission (SEC) on its proposed P2.0 billion worth of 182-day Series O commercial papers (CP) issuance.

“The foregoing commercial papers represent the first tranche of commercial papers that forms part of the P3.0 billion commercial paper program,” the company has stipulated in its disclosure to the Philippine Stock Exchange.

As stated in the SEC approval, Alsons is permitted to offer and sell its CP “to the general public in one or more tranches within a period of three (3) years,” from the effectivity date of its registration statement — and that’s reckoned as of June 25 this year.

“The first tranche shall be comprised of a base principal amount of P2.0 billion to be issued and offered for sale to the public,” the SEC order has specified.

The Series O CP issue will have a discount rate of 3.25% per annum; while the next targeted issuance will be 364-day Series P commercial papers issuance with a discount rate of 3.75%.

The company said the proceeds from that capital raising activity will bankroll its ongoing and pipelined expansion projects, including those on greenfield hydropower installations.

Alsons is currently advancing the construction of its 105-megawatt San Ramon coal-fired power facility in Zamboanga City; as well as its 14.5MW Siguil hydropower venture in Sarangani province.

The Siguil hydro plant is targeted reaching commercial operations next year; while the Zamboanga coal plant will add to Mindanao grid’s capacity starting 2024.

Onward, the Alcantara firm will be pursuing its robust pipeline of additional hydropower developments – primarily the blueprinted 42MW Bago hydropower plant in Negros Occidental; to be followed by its targeted 22MW Siayan hydro plant in Zamboanga del Norte.

The next investment course of the company will generally lean on renewable energy (RE) projects – and that will not only include prospects on hydro; but also solar farm installations.