by Myrna Velasco – November 23, 2015
from Manila Bulletin
Alsons Consolidated Resources, Inc. (ACR) of the Alcantara Group will be tapping the capital market for P7.5- billion fixed rate corporate notes issuance – proceeds of which shall be used to pay its existing debts and bankroll ongoing power investments.
In a statement to the media, the company has noted that the notes to be issued will be of 5-year and 7-year tranches.
For this, Alsons has entered into an Omnibus Notes Facility and Security Agreement, primarily with ING Bank N.V. – Manila Branch to act as the transaction’s issue manager and bookrunner.
“The proceeds from the issuance of such notes will be used to prepay an existing loan facility and to finance investment in power-related assets,” the company said.
The Alcantara firm is currently bringing to full commercial fruition the first 105-megawatt first phase of its Sarangani coal-fired power project. This is expected to add to Mindanao grid capacity by next year.
The Sarangani project will have its second phase which is similarly targeted to help shore up the southernmost grid’s power capacity within the 2018 timeframe.
The other power plant development being pursued by the Alcantara group is the 105MW coal-fired generating facility in Zamboanga City.
“ACR is developing coal-fired power facilities to help provide a stable source of baseload power for Mindanao and ensure long-term power security for the island,” the company qualified.
Presently, the power subsidiaries of the Alcantara group are also involved in the operation of the 103MW Iligan diesel-fired power facility; the 55MW thermal plant in Alabel, Sarangani; and the 100MW Western Mindanao Power Corporation power plant in Zamboanga City.
Beyond its investments in coal-fired assets, the company is setting its eyes next on renewable energy (RE) projects – as its way also of balancing carbon footprints.
It is currently advancing the development of its blueprinted 15MW run-of-river hydroelectric power facility along the Siguil River in Sarangani province.