Alsons Consolidated Resources, Inc. has listed an initial P1.4-billion worth of securities with the Philippine Dealing & Exchange Corp. as part of its P3-billion commercial paper program, it told the stock exchange on Friday.
The Alcantara-led firm said the debt papers under the program are to be offered in one or more tranches within three years from June 25, 2021.
“We are pleased with the opportunity to provide investors with an attractive alternative investment outlet as we once again tap the short-term capital market in our continuing quest to ensure the provision of safe, reliable and affordable power for the people of Mindanao and other areas of the Philippines,” Alsons Chairman and President Nicasio I. Alcantara said.
Multinational Investment Bancorporation was the issue manager, arranger, and underwriter for the issuance, while Acuña and Francisco Law was the transactional legal counsel, and AB Capital and Investment Corp. was the facility agent.
On June 29, Alsons placed the first tranche of its debt program at P2 billion to be offered for sale to the public. It said the initial tranche would be composed of 182-day securities with a discount of 3.25% per annum, and 364-day papers with a discount of 3.75%.
In May, the company said it was completing the development phase of two new hydropower plant projects after its entry into renewable energy with the 14.5-megawatt (MW) Siguil hydro power plant in Sarangani province.
The P4.5-billion run-of-river hydro plant, which is under construction at the Siguil River basin, is expected to start operations early next year.
In January, the Philippine Rating Services Corp. gave the issuance a PRS A plus issuer credit rating, which means that the company has an “above average capacity to meet its financial commitments compared to other Philippine corporates.”
Alsons earmarked P6.4 billion in capital expenditures for four projects, including the three hydro plants. It said it would source both internally generated and capital market funds to finance the projects.
Alsons provides electricity to more than eight million people in 14 cities and 11 provinces in Mindanao. Currently, it has four power plants with an overall capacity of 468 MW.
In 2020, its consolidated income reached P1.87 billion, nearly twice more than what it earned a year earlier, with the full operations of its power plants.
On Friday, shares of Alsons at the stock exchange went down 1.54% or two centavos to close at P1.28 per share. — Revin Mikhael D. Ochave
