Alsons corners rating upgrade for P3-B CP issuance
By Myrna M. Velasco – March 4, 2022, 4:22 PM
from Manila Bulletin
Alcantara-led Alsons Consolidated Resources Inc. (ACR) cornered a credit rating upgrade by Philippine Rating Services Corporation (PhilRatings) for its P3.0 billion commercial papers (CP) issuance.
The credit rating improvement to PRS Aa minus (corp), according to PhilRatings, was largely credited to ACR’s “strong capacity to meet its financial commitments relative to other Philippine corporates.”
The first tranche of the company’s CP issuance worth P1.4 billion was consummated last year and had been listed with the Philippine Dealing and Exchange Corporation (PDEx) in July 2021; while the second tranche of P600 million was listed in November last year.
“Proceeds from the issuance are being used primarily for general working capital purposes,” the Alcantara firm emphasized.
On the firm’s reinforced credit rating, PhilRatings conveyed that it primarily weighed on the “planned expansion projects (of ACR) which will further diversify its generation mix.”
The rating agency similarly cited Alsons’ “ability to establish joint ventures with strong partners for particular projects,” as well as the firm’s “strong profitability despite the ongoing Covid-19 pandemic.”
ACR, through its Alsons Power Group, is a well-entrenched player in the restructured power industry, primarily catering to the electricity needs of consumers in Mindanao grid.
To date, the company has aggregate capacity of 468 megawatts on its power generation portfolio and has been expanding its capacity both in thermal as well as renewable energy installations. Its electricity output serves the electricity needs of more than 8.0 million people in 14 cities and 11 provinces in Mindanao grid.
The company is currently advancing its 105MW coal-fired power project to satiate the power supply requirement of Zamboanga City; and it is likewise at the process of completing its 14.5MW run-of-river Siguil hydropower project in Sarangani province.
The next round of project developments blueprinted by the Alcantara-owned company will primarily be focused on hydropower installations for sites already identified in Visayas and Mindanao grids.
