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Alsons lists ₱694-M worth of CPs

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By Myrna M. Velasco

Listed firm Alsons Consolidated Resources Inc. (ACR) has listed with the Philippine Dealing and Exchange Corporation (PDEx) the ₱694 million first tranche of its commercial papers (CP) issuance.

The Alcantara firm said this is part of the ₱1.5 billion CP float that the company has programmed to provide interim funding for its expansion projects in the renewable energy (RE) development space. One of the company’s projects that already advanced to implementation phase is its 14.5-megawatt Siguil hydropower project that is being installed in Maasim, Sarangani province.

That particular run-of-river hydropower project development commands P4.5 billion worth of financing, which will then be bankrolled partly by proceeds from the company’s CP issuance.

As noted by ACR Chief Financial Officer Robert F. Yenko, the move of the company to tap the short-term capital market for working capital needs would usher in the “exciting times ahead for ACR as we begin to focus on building up our RE portfolio.”

The firm’s CP issuance had been accorded PRS A plus rating (corp), with a ‘stable outlook’ by the Philippine Rating Services Corporation (PhilRatings).

The ratings agency primarily cited ACR’s “above average capacity to meet its financial commitments relative to other Philippine corporates, the positive growth prospects for Mindanao which will bring about an increasing demand for power,” as well as the company’s “ability to establish joint ventures with strong partners for particular projects.”

In the past 4-5 years, the Alcantara firm has mostly concentrated efforts on completing its two-phased coal fired power project in Sarangani province – which at 210MW capacity had helped shore up capacity in Mindanao especially at the time when it was on a crisis mode.

On the RE sphere, the Siguil project is just the starting point for the company; as it is also lining up two projects that will then build up its hydropower portfolio.

The next ones that it has been targeting to take off from the drawing board would be the proposed 38MW Silangan hydropower facility in Zamboanga Del Norte; and the 42MW Bago hydropower project in Negros Occidental.

Altogether, the power investment group of ACR indicated that it will be pursuing eight (8) hydropower projects – the majority of which will be sited in various parts of Mindanao.

“Once completed and operational, these eight hydropower plants will constitute the bulk of the company’s power facilities,” the company has emphasized.

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