MANILA, Philippines — Alsons Consolidated Resources Inc. (ACR), the listed holding firm of the Alcantara Group, has listed the initial tranche of its P2.5-billion commercial papers with the Philippine Dealing and Exchange Corp. (PDEx) to provide interim funding for its first renewable energy (RE) project.
The company started trading the initial P100 million commercial papers at the PDEx which will be used to partially finance the working capital for the development of the group’s initial entry in the renewable energy sector.
ACR executive vice president and Alsons Power chief executive officer Tirso Santillan, Jr. said the ceremonial listing “is a high point in our efforts to tap the short-term capital market for our working capital needs.”
Power unit Alsons Power Group is currently working on the 15-megawatt (MW) Siguil run-of-river hydropower plant in Maasim, Sarangani which has a project cost of P4.25 billion.
The Siguil plant is expected to begin commercial operations in 2021 and will provide power to Sarangani province, General Santos City and key municipalities of South Cotabato.
The issuance of commercial papers is also seen to give the company flexibility to tap funding sources in the initial phase of development of other hydro power projects, said Robert Yenko, chief finance officer of ACR.
“It’s just for working capital needs. It gives us some flexibility. Sometimes, they are cheaper than bank loans,” he said.
ACR plans to pursue additional run-of-river hydroelectric power projects in Negros Occidental, Sarangani, Davao Oriental, Zamboanga del Norte, the two Agusan provinces, and Surigao del Sur.
These projects have a total hydro capacity potential totaling more than 145 MW.
“We’re looking to add up to 145 MW of renewable energy from the eight run-of-river hydro power facilities that we will be developing in various locations in Mindanao and Negros Occidental. This facility will give us the ability to bridge the financial requirements of our projects under development,” Santillan said.