Citicore Energy REIT Corporation (CREIT), the Philippines’ first renewable energy real estate investment trust and the largest renewable energy landlord, on January 30 obtained the green light from the Securities and Exchange Commission (SEC) to sell its maiden Asean green bond offering.
The fixed-rate bonds, due in February 2028, will bear a coupon rate of 7.0543%. The bonds and CREIT are rated PRS Aa+ with stable outlook by the Philippine Rating Services Corporation – reflecting the company’s strong capacity to meet its financial obligations.
The size of the offering was not disclosed in the company’s latest filing with Philippine Stock Exchange, though it mentioned in its disclosure in September 2022 that its board of directors approved the issuance of up to 4.5 billion pesos (US$82.5 million), comprising of a base offer of up to 3 billion pesos with an oversubscription option of up to 1.5 billion pesos.
The offer will run until February 3 2023, with SB Capital and Investment Corporation and PNB Capital and Investment Corporation acting as the transaction’s joint local underwriters, issue managers, bookrunners and selling agents.
“After opening the doors to a new Reit asset class in 2022 focused on renewable energy, we want to show our existing and potential investors, and all stakeholders that we are committed to continuously provide them with green and sustainable investment options,” says CREIT president and chief executive officer Oliver Tan.
The proceeds of the offering are earmarked for the development of a solar rooftop system project and acquisition of land parcels with an estimated area of 5 million square metres. The land parcels, located in the southern province of Batangas, will be leased out to solar power generators and operators affiliated with CREIT’s sponsor, Citicore Renewable Energy Corporation (CREC).
These units have secured solar energy service contracts from the Department of Energy to construct three utility-scale solar plants, with a total projected generation capacity of 269 megawatts direct current (MWdc) and form part of CREC’s expansion pipeline. “We constantly explore and prioritize investment alternatives that would allow us to accelerate CREIT’s growth trajectory and green asset portfolio to enable us to reward our shareholders with greater value,” adds Tan.
CREIT’s sponsor CREC is a pure renewable energy developer and operator of solar, run-of-river hydro, and offshore wind energy platforms with over 5 gigawatts of project pipelines in varying stages of development.