Friday, November 27, 2015

Alsons issues P7.5-B debt notes to fund RE projects



November 26, 2015 9:33 pm  by KRISTYN NIKA M. LAZO AND RITCHIE A. HORARIO REPORTERS

Alsons Consolidated Resources Inc. has tapped the debt market to raise P7.5 billion to fund new and existing power plants, as well as future ventures in renewable energy.
The company entered into an omnibus notes facility and security agreement with ING Bank N.V. for the fixed-rate corporate notes. The bank’s Manila Branch is the issue manager and bookrunner for the transaction.
In a disclosure to the Philippine Stock Exchange on Thursday, Alsons said the notes will be issued in five- and seven-year tranches.
Part of the proceeds from the debt notes will be used to prepay an existing loan facility.
According to Alsons, it is the first and most experienced independent power producer in Mindanao.
The company is currently developing coal-fired power plants, including the 105-megawatt (MW) San Ramon Power Inc. in Zamboanga and the 210-MW Sarangani Energy Corp. in Maasim, Sarangani. These power facilities are expected to provide a long-term baseload for Mindanao.
Alsons is also going into renewable energy, gearing up to start building a 15-MW hydroelectric plant at the Siguil River in Sarangani next year.
All of the power assets held by Alsons are expected to generate 588 MW by 2019, accounting for 25 percent of the projected peak demand for Mindanao.
The Alsons Group said it has been active in the economic development of the country for more than 50 years, mainly in Mindanao.

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