MANILA, Philippines — Alcantara-led Alsons Consolidated Resources Inc. (ACR) is raising P6 billion through the issuance of corporate notes to refinance debts and fund investments in renewable energy.

In a disclosure to the Philippine Stock Exchange, ACR said it has entered into an omnibus notes facility and security agreement worth P6 billion.

“The proceeds from the issuance of such notes will be used to refinance the outstanding principal balance of the company’s existing peso denominated fixed-rate notes and to partially finance ACR’s investments in renewable energy projects,” the company said.

Development Bank of the Philippines has been tapped as the lead mandated arranger for the transaction.

ACR has a number of projects in the immediate pipeline such as the P4.5-billion, 14.5-megawatt (MW) Siguil Hydro run-of-river hydroelectric power plant in Maasim, Sarangani province and the P16-billion 105-MW San Ramon Power Inc. (SRPI) baseload coal-fired power plant in Zamboanga City.

The company said construction for the Siguil Hydro plant – its first foray into renewable energy, is ongoing and is targeted for completion in 2022, making the Siguil Hydro plant available to supply power to Sarangani and South Cotabato, General Santos City and other areas in the Mindanao grid.

The SRPI plant will begin construction in 2021 and will commence operating in early 2024 to deliver baseload power to Zamboanga City and nearby areas.

ACR said it is set to focus on renewables in the long term 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 22-MW 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 Mindanao.

In the nine months to September, ACR reported a 180 percent jump in its net income to P1.67 billion, driven by the improved performance of its power generation units.

The company attributed the growth to the improved performance of Sarangani Energy Corp. (SEC) and Western Mindanao Power Corp. (WMPC).

Revenues also grew 56 percent to P7.3 billion.

“For the rest of the year, we remain cautiously optimistic on the financial performance of the company,” ACR deputy chief financial officer Philip Edward Sagun said.

“We expect higher revenues and profit margins from the full commercial operations of the Sarangani Energy plant. We will also reap the benefits of lower operating costs as we continue to maintain cost efficiency measures,” he said.