Alsons Lists ₱1.265B Commercial Papers on Top Of Credit Rating Upgrade
Alsons Consolidated Resources, Inc. (ACR) has listed the third tranche – worth 1.265 billion – of the company's 3 billion Commercial Paper (CP) Program with the Philippine Dealing and Exchange Corporation (PDEx).
Photo Insert: An Alsons Power facility
ACR, the Alcantara Group's publicly traded firm, listed its first tranche of CPs for 1.4 billion in July 2021. In November 2021, the second tranche of CPs worth $600 million was offered. The proceeds from the issuance will mostly be utilized for general operating capital.
“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." ACR Executive Vice President Tirso G. Santillan, Jr. said at the listing ceremony.
ACR is Mindanao's first private sector power generator, serving over eight million people across 14 cities and 11 provinces on the country's second largest island. The company now has four power facilities in Mindanao with a combined capacity of 468 megawatts (MW).
The company is currently building a 4.5 billion 14.5 MW hydroelectric power project in the Siguil River basin in Sarangani Province, which is scheduled to startup in the second quarter of 2023. The Siguil Hydro Power Project will be the first of eight hydroelectric facilities developed by the company.
ACR also achieved an issuer credit rating upgrade from the Philippine Rating Services Corporation (PhilRatings) in the first quarter of this year, moving to PRS Aa minus (corp.) from PRS A plus (corp).
A corporation with a PRS Aa rating has a strong capacity to meet its financial commitments relative to other Philippine corporations, according to PhilRatings.
Among the factors cited by PhilRatings for the credit rating upgrade were ACR's planned expansion projects that will further diversify its generation mix; the Company's ability to establish joint ventures with strong partners for specific projects; and its strong profitability despite the ongoing COVID-19 pandemic.