Alsons raises P1.6 billion via commercial papers

February 11, 2025 | 12:00am

MANILA, Philippines — Alcantara-led Alsons Consolidated Resources Inc. (ACR) has returned to the debt market, raising P1.6 billion from the first tranche of its P3-billion commercial paper program.

The first tranche, which consisted of a base offer of P1.2 billion and an oversubscription option of up to P400 million, was listed on the Philippine Dealing and Exchange Corp. yesterday.

The proceeds from the fundraising will be used by ACR to refinance its maturing short-term obligations and bankroll its working capital requirements.

“This commercial paper program provides us with an efficient and cost-effective way to support our working capital requirements, enabling us to fulfill our mission of unlocking potential and empowering progress in Mindanao and beyond,” ACR deputy chief finance officer Philip Edward Sagun said.

Late last month, ACR secured the green light from the Securities and Exchange Commission for its commercial paper program, which will be offered in one or more tranches.

The company tapped RCBC Capital Corp. as the issue manager, lead underwriter and bookrunner for the transaction, with MIB Capital Corp. acting as the arranger.

This marks the company’s fourth commercial paper program since its first issuance in 2018.

A commercial paper is a short-term, unsecured debt instrument used to fund short-term financial obligations and is typically issued by companies with high credit ratings.

ACR, through Alsons Power Group, intends to roll out a fresh wave of renewable energy projects this year, building on the success of its first green venture in 2024.