Alcantara-led Alsons Consolidated Resources Inc. has recently raised an additional P1.38 billion through its commercial paper issuance as it focuses on building its renewable energy portfolio in Mindanao, according to a stock exchange disclosure on Friday.
The amount raised represents the second tranche of a P3-billion commercial paper program, with the initial P620 million being listed in December last year.
This is the company’s third commercial paper program since it entered the debt market in 2018.
Commercial papers serve as a short-term facility that enables companies to raise capital quickly. These are attractive to investors seeking low-risk short-term investments.
Advancing Clean Energy
“In line with our commitment to the environment, we are actively expanding into renewable energy for our capacity expansion,” stated Tirso Santillan, Alsons executive vice president and chief executive.
Santillan acknowledged that Alsons still relies on four fossil fuel-fired baseload plants for reliability and cost considerations. However, the company aims to increase the share of renewables in its energy mix to at least 50 percent over the next three to five years through the development of additional clean energy facilities. These four plants currently serve over 8 million people in Mindanao and have a combined capacity of 468 megawatts (MW).
Alsons is currently prioritizing the development of eight run-of-river hydroelectric power facilities, with the Siguil hydro plant in Maasim, Sarangani Province, expected to begin commercial operations before the end of this year. This is a 14.5-MW facility.
Furthermore, the company plans to commence the construction of three additional facilities in Zamboanga del Norte, Negros Occidental, and General Santos next year, with a combined capacity of at least 37.8 MW.
In the first quarter of this year, Alsons reported a 67-percent growth in earnings to P542.27 million as power demand steadily recovered in Mindanao.
Philippine Rating Services Corp. (PhilRatings) recently reaffirmed Alsons’ “PRS Aa minus” credit rating, indicating that the company has a strong capacity to meet its financial commitments compared to other Philippine corporates. PhilRatings took into account the company’s planned expansion projects when maintaining the credit score.
READ:
Alsons retains favorable credit rating
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
Denial of responsibility! Samachar Central is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
