ALSONS Consolidated Resources, Inc. (ACR), the listed investment holding company of the Alcantara Group, has secured P1.6 billion from the issuance of commercial papers.
The company listed the initial tranche of its P3-billion commercial paper program on the Philippine Dealing & Exchange Corp. (PDEx), it said in a statement.
“ACR is committed to helping address the country’s growing demand for reliable and affordable power. This commercial paper program provides us with an efficient and cost-effective way to support our working capital requirements, enabling us to fulfill our mission of unlocking potential and empowering progress in Mindanao and beyond,” said ACR Deputy Chief Financial Officer Philip Edward B. Sagun.
The issuance consists of a base offer of P1.2 billion and an oversubscription of up to P400 million.
Commercial papers are short-term debt securities issued by corporations to raise funds for immediate financial needs, such as refinancing short-term liabilities or covering operational expenses.
According to its latest prospectus, ACR intends to use the proceeds to refinance maturing short-term obligations and for working capital purposes.
RCBC Capital Corp. acted as the issue manager, lead underwriter, and bookrunner for the program. MIB Capital Corp. was appointed as the arranger, while AB Capital and Investment Corp. served as the facility agent.
The Securities and Exchange Commission recently issued a certificate of permit to offer the securities.
ACR is currently focused on expanding its renewable energy portfolio, with several hydro and solar power projects in various stages of development.
It also aims to grow its retail electricity supply customer base.
“We are optimistic about the expansion of our Retail Electricity Supply unit as we continue to enhance our market presence, improve our operational capability, and develop our power assets,” said Mr. Sagun.
ACR, which describes itself as Mindanao’s first independent power producer, operates four power plants with a combined capacity of 468 megawatts.
At the local bourse on Monday, shares in the company climbed by 2.15% to close at P0.475 each. — Sheldeen Joy Talavera
