ALSONS Consolidated Resources Inc. has reissued P694 million worth of commercial papers with the Philippine Dealing and Exchange Corp. (PDEx).
In a disclosure on Wednesday, Alsons said the issuance was taken from the first P1.5-billion tranche of its commercial paper program approved earlier by the Securities and Exchange Commission (SEC).
Proceeds from the offer will be used to help finance the company’s continued expansion into the renewable energy (RE) sphere.
“We are happy to once again tap the short-term financial market for our working capital needs,” Alsons Chief Financial Officer Robert Yenko said. “These are exciting times ahead for [Alsons] as we begin to focus on building up our RE portfolio and this capacity will greatly help us in these efforts.”
The Philippine Rating Services Corp. (PhilRatings) kept its “PRS A plus (corp.)” rating with a stable outlook for the issuance, citing Alsons’ “above-average capacity to meet its financial commitments relative to other Philippine corporates.”
A stable outlook means it is unlikely to change in the next 12 months.
PhilRatings took into consideration Alsons’ “positive growth prospects for Mindanao, which will bring about an increasing demand for power” and its “ability to establish joint ventures with strong partners for particular projects.”
The Alcantara Group’s power business first received the rating in 2018.
Alsons operates four power facilities in Mindanao with an aggregate capacity of 468 megawatts (MW). These plants serve over 8 million people in 14 cities — including Cagayan de Oro, General Santos, Iligan and Zamboanga — and 11 provinces.
It is developing a 14.5-MW run-of-river hydroelectric power plant worth P4.5 billion at the Siguil River basin in Maasim town, Sarangani province. This facility is expected to start commercial operations in 2022 and shall supply electricity not only to residents of Sarangani, but also to General Santos and key towns in South Cotabato province.
The plant marks Alsons’ venture into renewables and, once completed, will be the first of eight run-of-river hydroelectric power facilities to be developed in Mindanao and Negros Occidental province.
Alsons shares tumbled by 1 centavo or 0.80 percent to close at P1.24 each on Wednesday.