Alsons raising P2.5 B from commercial papers

MANILA, Philippines — Alsons Consolidated Resources Corp. plans to raise up to P2.5 billion from the issuance of commercial papers to refinance its short-term obligations.

The  Alcantara Group’s holding firm, ACR also plans to use proceeds from the offering to fund the development of the 15.1 megawatt Singuil hydro power plant which is targeted for commercial operations by the first half of 2020.

The facility will provide power to Sarangani province, General Santos City and key municipalities of South Cotabato.

It marks ACR’s entry into the renewable energy space.

ACR’s planned issuance of P1.5 billion worth of commercial papers was assigned an issuer credit rating of PRS A plus (corp.), with a Stable Outlook by local credit watcher Philippine Rating Services Corp.  This forms part of the company’s approved shelf registration of up to P2.5 billion in commercial papers.

A company rated PRS A (corp.) has an above average capacity to meet its financial commitments relative to that of other Philippine corporates.

On the other hand, an Outlook is an indication as to the possible direction of any rating change within a one year period and serves as a further refinement to the assigned credit rating for the guidance of investors, regulators, and the general public.

A Stable Outlook is assigned when a rating is likely to be maintained or to remain unchanged in the next 12 months.

 In assigning the rating,  PhilRatings considered Mindanao’s  positive growth prospects which will bring about an increasing demand for power, the company’s ability to establish joint ventures with strong partners for particular projects and  its expansion plans.

Considered as the flagship unit under the Alcantara Group, ACR is a holding company which sources almost all of its revenues from investments in energy and power. It  also has real estate development projects in Mindanao. 

 The Alcantara Group has been operating in Mindanao for more than 60 years. The company’s power plants are located in Mindanao and mostly consist of diesel and coal-fired power plants, with a few projects in renewable energy in the pipeline. 

The group is proactive in seeking out other potential renewable energy sources which will further diversify its revenue mix. 

At present, ACR has four operating power plants in Mindanao, with a total power capacity of about 363 MW in operation. About 372.1 MW are still under construction or development. 

In terms of profitability, ACR’s revenue performance has been relatively volatile in the past three years.

In the first quarter, ACR grew its net income by P21.6 million to P103.14 million on revenues of P1.68 billion.