Alsons bags regional award for P10.5-B power deal

MANILA, Philippines — The P10.5-billion loan of Alsons Consolidated Resources Inc. (ACR) to bankroll the expansion of its Sarangani power plant was named Philippine Power Deal of 2017 by Hong Kong-based business news and research organization The Asset.

The Asset cited “the project’s solid fundamentals, the strong commitment and financial strength of the sponsors (borrowers) who utilized their equity to get the project started and move the project forward even prior to financial close, and the economic impact of the project.” 

ACR’s power group secured the P10.5-billion loan with seven local banks comprised of BDO Universal Bank (BDO), Asia United Bank (AUB), Rizal Commercial Banking Corp. (RCBC), United Coconut Planters Bank (UCPB), Philippine Business Bank, China Bank Savings, and Robinsons Bank Corp.

The loan has a 13.5-year tenor including a 3.5-year grace period on principal repayment which was arranged by BDO Capital and Investment Corp., RCBC Capital, AUB, and UCPB. 

The borrowing will finance the second 105-megawatt (MW) section of the 210-MW coal-fired baseload power plant in Maasim, Sarangani Province under Sarangani Energy Corp. (SEC).

Construction began in January and is targeted for completion in the first half of 2019.

The initial 105-MW section began commercial operations in April 2016, supplying baseload power to over three million people residing in Sarangani Province, General Santos City, Iligan City, Compostela Valley, Agusan del Norte, Agusan del Sur, and other major population centers of Mindanao.

Once section 2 is finished, it will contribute another 105 MW of baseload power to benefit an additional three million residents of South Cotabato, Davao del Sur, Zamboanga del Norte, Zamboanga del Sur, Cagayan de Oro City, and other key areas of Mindanao.