Alsons Consolidated Resources Secures SEC Approval for P1.6 Billion Commercial Papers to Support Expansion

Alsons Consolidated Resources, Inc. (ACR) is taking strategic steps to reinforce its financial position as it prepares to issue up to P1.6 billion in commercial papers. The move, backed by the Securities and Exchange Commission (SEC), will help the Alcantara-led company refinance maturing short-term obligations and strengthen its working capital.

This issuance is part of ACR’s larger P3 billion Commercial Paper (CP) Program, demonstrating the company’s proactive approach to managing liquidity and ensuring sustained growth in its core business sectors.

The first tranche of the CP issuance will include a P1.2 billion base offer, with an additional P400 million in oversubscription, offering flexibility depending on market demand. ACR’s financial credibility received a boost with a credit rating of Aa minus corp from Philippine Ratings Services Corporation (PhilRatings) on April 17, 2024.

This rating indicates the company’s solid creditworthiness and financial stability. While credit ratings serve as an evaluation of financial health, they are not investment recommendations and remain subject to revision, suspension, or withdrawal.

Originally established as Victoria Gold Mining Corporation in 1974, ACR evolved through multiple transformations before becoming part of the Alcantara Group in 1995. Today, it has built a diversified portfolio spanning energy and power, property development, and strategic investments.

Its energy and power ventures operate under four key holding firms: Conal Holdings Corporation, Alsing Power Holdings, Inc., Alsons Renewable Energy Corporation, and  Alsons Thermal Energy Corporation.

ACR continues to expand its presence in Mindanao’s power sector, supporting the region’s growing energy needs while also investing in renewable energy initiatives.

With a fresh capital injection and a strategic financial plan in place, ACR is positioning itself for future expansion. What are your thoughts on ACR’s financial strategy? Should more companies take a proactive approach in managing short-term obligations through commercial paper issuances? Share your insights below!