ALSONS Consolidated Resources, Inc (ACR) listed on Friday P100 million worth of commercial paper, the first portion of its P2.5-billion debt program, to cover the initial funding for its venture into renewable energy.
The funds raised from the issuance will partly fund the development of its P4.25-billion run-of-river hydroelectric power project at the Siguil River basin in Maasim, Sarangani province.
“We’re looking to add up to 145 megawatts 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,” said ACR Executive Vice-President Tirso G. Santillan, Jr. during the listing ceremony.
“This facility will give us the ability to bridge the financial requirements of our projects under development,” he added.
The hydropower plant is expected to start commercial operation in 2021 and will power Sarangani province, General Santos City and some municipalities in South Cotabato.
Mr. Santillan described the issuance as a “high point” in the company’s efforts to tap the short-term capital market for its working capital.
He said the company is also looking to add more run-of-river hydroelectric projects in Negros Oriental, Sarangani, Davao Oriental, Zamboanga del Norte, the two Agusan provinces, and Surigao del Sur.
ACR’s commercial paper is due on Oct. 21, 2019 and carry a discount rate of 6.38%.
ACR’s power group claims to be Mindanao’s first and most experienced independent power producer. It operates four power facilities on the island.
Aside from the Siguil project, ACR is also developing a 105-MW San Ramon Power, Inc. coal-fired power plant in Zamboanga City, which is expected to begin operating in 2022.
The group also runs the Southern Philippines Power Corp. in Alabel, Sarangani and Western Mindanao Power Corp. in Zamboanga City.
It also operates the 103-MW Mapalad Power Corp. diesel plant in Iligan City and the first 105-MW section of the 210-MW Sarangani Energy Corp. baseload coal-fired power plant in Maasim, Sarangani province.
The Sarangani plant’s second 105-MW section is expected to begin commercial operations in the first quarter of 2019.
On Friday, shares in ACR slipped 0.79% to close at P1.26. — Victor Saulon
