Alcantara-led Alsons Consolidated Resources Inc. (ACR) is raising P6 billion through the issuance of corporate notes.
The company told the stock exchange Tuesday that it entered into an omnibus notes facility and security agreement for the refinancing of its fixed rate corporate notes amounting to P6 billion.
The issuance will have 5-year and 7-year tranches, proceeds of which will be used to refinance outstanding principal balance of its peso-denominated fixed rate notes and partly finance investments in renewable energy (RE) projects.
ACR tapped Development Bank of the Philippines (DBP) as lead arranger for the transaction.
ACR is Mindanao’s first private-sector power generator. The company has a portfolio of 4 power facilities with an aggregate capacity of 468 MW serving over 8 million people in 14 cities and 11 provinces in the country’s second largest island.
The company’s projects in the immediate pipeline include the P4.5-billion 14.5 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 currently ongoing and targeting completion in 2022 making the Siguil Hydro plant available to supply power to the provinces of Sarangani and South Cotabato, General Santos City, and other areas in the Mindanao grid. The SRPI plant will begin construction in 2021 and will commence operating in early 2024 to deliver baseload power to Zamboanga City and nearby areas.
For the long-term, the company is slated to focus on renewables with at least 7 more run of river hydroelectric plants in various stages of development.
The next two hydro facilities in the pipeline are the 22 MW Siayan (Sindangan) Hydro plant in Zamboanga del Norte and the 42 MW Bago Hydro plant in Negros Occidental, the company’s first power venture outside of Mindanao.