Alcantara-led Alsons Consolidated Resources Inc. (ACR) has listed the P1.4 billion first tranche of its commercial papers (CP) issuance with the Philippine Dealing and Exchange Corporation (PDEx), the company announced on Friday.
That fraction of the issuance will be the initial part of the P3.0 billion CP program that it had secured approval for from the Securities and Exchange Commission.
“The securities will be offered in one or more tranches within three (3) years from June 25, 2021,” the company has emphasized.
As noted by ACR Chairman and President Nicasio I. Alcantara, that fund raising activity of the company is an opportunity “to provide investors with an attractive alternative investment outlet as we once again tap the short-term capital market in our continuing quest to ensure the provision of safe, reliable and affordable power for the people of Mindanao and other areas of the Philippines.”
At the height of the power crisis in recent years, the Alcantara group has joined the bandwagon of thermal power plant developments that helped solve the grid’s need for baseload capacity.
But as the Mindanao power system is now teeming with supply, ACR is also taking strides on shifting its investment paragon – this time will mainly be leaning on renewable energy technologies, primarily its already-blueprinted run-of-river hydropower ventures in Visayas and Mindanao.
The proceeds from its CP issuance then will be funneled to these targeted greenfield power projects – including another thermal power facility in Zamboanga City.
The company had tapped Multinational Investment Bancorporation as the issue manager, arranger and underwriter for the initial tranche of the CP issue; while AB Capital and Investment Corporation has been the facility agent; and the legal advisor was Acuña and Francisco Law.
The CP issuance was bestowed with PRS A plus (corp) issuer credit rating by the Philippine Rating Services Corporation (PhilRatings), which assessed that “the company has an above average capacity to meet its financial commitments relative to other Philippine corporates.”
From the company’s current power generation portfolio of 468 megawatts, that will further be beefed up next year with the targeted completion of its 14.5MW Siguil hydropower facility; and will continually be buoyed in the coming years via its additional power plant installations.