Alsons eyes P2 billion from CP issuance

MANILA, Philippines — Alcantara-led Alsons Consolidated Resources Inc. (ACR) is eyeing to raise P2 billion from the initial issuance of commercial papers (CPs) this year.

In a statement, ACR said hilippine Rating Services Corp. (PhilRatings) has assigned an issue credit rating of PRS A plus (corp.) with a stable outlook for the first tranche of its P3-billion CPs.

A PRS A plus (corp.) rating means the company has an above average capacity to meet its financial commitments relative to other Philippine corporates.

Among the factors cited by the credit rating agency as basis for the rating were “the positive growth prospects for Mindanao which will bring about an increasing demand for power,” and ACR’s “ability to establish joint ventures with strong partners for particular projects.”

A  stable outlook was also assigned to the issue.  This means the rating is likely to be maintained or to remain unchanged in the next 12 months.

“We have once more deemed it favorable to tap the short-term capital markets for our working capital needs as we continue to pursue power projects that we hope will contribute to the economic recovery of our country, by helping create new jobs and stimulate the local economies in our project locations and in the areas where we operate,” ACR deputy CFO Philip Sagun said.

ACR has been raising funds to bankroll its ongoing projects, particularly its foray into the renewable energy space.

The company’s projects in the immediate pipeline include the P4.5 billion 14.5-megawatt (MW) Siguil Hydro run of river hydroelectric power plant in Maasim, Sarangani Province and the P16-billion 105-MW San Ramon Power Inc. (SRPI) baseload coal-fired power plant in Zamboanga City.

Construction for the Siguil Hydro plant – ACR’s first foray into renewable energy – is ongoing and targeting completion in 2022.

Once completed, the Siguil Hydro plant will supply power to the provinces of Sarangani and South Cotabato, General Santos City, and other areas in the Mindanao grid.

Meanwhile, the SRPI plant will commence operating in early 2024 to deliver baseload power to Zamboanga City and nearby areas.