MANILA, Philippines — The Securities and Exchange Commission (SEC), the corporate regulator, has given its green light to Alsons Consolidated Resources Inc. to raise P2.5 billion through the issuance of commercial papers.
The SEC approved the plan in its en banc meeting on Friday.
Alsons, the listed holding company of the Alcantara Group, is looking to raise the amount from the issuance of commercial papers in the next three years.
According to its filing, the first tranche would be used for the construction of its Siguil hydropower plant.
The first tranche of the issuance would consist of P1.5 billion worth of commercial papers with a tenor of 90 days for Series A, 180 days for Series B, and 360 days for Series C.
Its filing showed that the commercial papers will be priced at a discount or at face value, with the discounts ranging from 4.9416 percent to 5.9416 percent for Series A, 5.1763 percent to 6.1763 percent for Series B, and 5.7161 percent to 6.7161 percent for Series C.
Alsons, which filed its application for registration of the commercial papers with the SEC last Aug. 3. tapped Multinational Investment Bancorporation as sole issue manager, lead arranger and underwriter.
The company will list the commercial papers at the Philippine Dealing & Exchange Corp., the country’s trading platform for fixed-income.
Alsons expects net proceeds of P1.395 billion from the first tranche which would be used to settle its short-term obligations worth P291.25 million.
The company’s short-term obligations are set to mature in the current quarter.
The balance, worth P1.10 billion would then be used for its P3.9-billion run-of-river hydroelectric power plant that the company plans to build along Siguil River in Sarangani province, Alsons said in its registration statement.
Philippine Rating Services Corp., the local debt watcher, assigned a PRS A plus rating on the issuance as well as a stable outlook, indicating that it is unlikely to change in the next 12 months.
It said Alsons has an above average capacity to meet its financial commitment compared to other local firms, yet it is also more susceptible to adverse changes in circumstances and economic conditions than higher-rated companies.
Alsons operates several power companies mostly in Mindanao. These include the Southern Philippines Power Corp. in Alabel, Sarangani Province; the Western Mindanao Power Corp. and San Ramon Power Inc. in Zamboanga City; the Sarangani Energy Corp. in Maasim, Sarangani Province; and the Mapalad Power Corp. in Iligan City.