Alsons Consolidated Resources, Inc. (ACR), which has power generating assets concentrated in Mindanao, said it was given a “PRS A+ (corp.) with a Stable Outlook” issuer credit rating from the Philippine Rating Services Corporation (PhilRatings) for the proposed first tranche of its new commercial papers (CPs).
A company with a PRS A+ (corp.) rating, according to PhilRatings, means it has an above average capacity to meet its financial commitments compared to other firms. A stable outlook, meanwhile, means that the rating is likely to remain unchanged within the next twelve months.
The first tranche of the CPs is worth Php2 billion, while the entire CP program may reach Php3 billion. ACR is aiming to have the CPs listed and issued within the year, pending approval by the Securities and Exchange Commission (SEC). ACR’s previous CP issuance of up to Php2.5 billion, registered with the SEC in 2018, was also assessed by PhilRatings with a similar rating grade.
Among the factors cited by the credit rating agency as basis for the rating were “the positive growth prospects for Mindanao which will bring about an increasing demand for power,” and ACR’s “ability to establish joint ventures with strong partners for particular projects.”
“We are glad that PhilRatings has demonstrated anew its confidence in ACR with a [PRS A+] rating for our new CP [program]. We have once more deemed it favorable to tap the short-term capital markets for our working capital needs as we continue to pursue power projects that we hope will contribute to the economic recovery of our country, by helping create new jobs and stimulate the local economies in our project locations and in the areas where we operate,” ACR Deputy Chief Financial Officer Philip Sagun said in a statement.
ACR, Mindanao’s first private sector power generator, is currently building a Php4.5 billion 14.5 megawatt (MW) run-of -river hydroelectric power plant at the Siguil River basin in Maasim, Sarangani, the company’s first foray into renewable energy (RE). The Siguil Hydro power plant is expected to begin commercial operations in 2022. Another project in the company’s pipeline is the Php16 billion 105MW San Ramon Power, Inc. baseload coal-fired power plant in Zamboanga City, which is slated to begin operations in 2024.
For the long-term, the company is slated to focus on RE with at least seven more run-of-river hydroelectric plants in various stages of development. The next two hydro facilities in the pipeline are the 22MW Siayan (Sindangan) Hydro plant in Zamboanga del Norte and the 42 MW Bago Hydro plant in Negros Occidental, the company’s first power venture outside of Mindanao.
ACR currently has a portfolio of four power facilities with an aggregate capacity of 468MW serving over eight million people in 14 cities and 11 provinces, including key urban centers such as Cagayan de Oro, General Santos, Iligan, and Zamboanga City.