Alsons Consolidated Resources Inc. has cleared the issuance of P2.5 billion in the issuance of short term commercial papers (STCPs) to fund their operations and bankroll projects in Mindanao.
Alsons said proceeds of the issuance will be used “to fund its working capital requirements and other general corporate purposes including operations of the company’s power projects in Mindanao.”
The company’s board on Friday authorized raising P2.5 billion for the STCPs, to be issued in multiple tranches.
P500 million will be issued in the first tranche due within the year or early next year, with tenors of 90, 180 and 360 days.
Succeeding portions will be issued in 2017 and 2018 with P1 billion per year.
Its board also approved the Multinational Investment Bancorporation as the sole underwriter, and AB Capital and Investment Corp. – Trust and Investments Division as facility agent for the issuance.
Alsons received an issuer credit rating of PRS Aa, the second highest rating category on the Philippine Rating Services Corp.’s current credit rating scale.
PhilRatings cited the company’s “robust revenue generating capability” and its “ability to establish joint ventures with strong partners for particular projects.”