Alsons to raise P2.5 B from commercial papers

MANILA, Philippines — Alsons Consolidated Resources Inc. of the Alcantara Group is looking to raise up to P2.5 billion from the sale of commercial papers to refinance existing debts.

The company has filed an application with the Securities and Exchange Commission (SEC), which has approved the P2.5-billion fund-raising activity.

Alsons will issue an aggregate amount of P2.5 billion in several tranches in three years, with the first tranche amounting up to P500 million.

Net proceeds from the offer is expected to reach P463.52 million, which will be used to pay for some of its maturing short-term obligations.

Among these obligations are with Metrobank Trust Banking Group including the P34-million, 90-day loan maturing in Oct. 16; P124-million, 91-day loan maturing in Oct. 30; P100-million, 90-day loan maturing in Nov. 16; and P170-million 90-day loan maturing in Nov. 27.

It also has a P30-million, 91-day loan with Sterling Bank of Asia Trust Group maturing in Nov. 13.

The firm said these short-term loans were used to partially finance various project costs that are currently being developed.

Alsons intends to list and trade the commercial papers at the Philippine Dealing & Exchange Corp. (PDEx).