Citicore Energy REIT Corp, the first renewable energy real estate investment trust in the Philippines, received approval from the Securities and Exchange Commission (SEC) to sell its inaugural ASEAN green bond offering.
The offering will have a base principal amount of P3 billion, with an oversubscription option of up to Php 1.5 billion.
The funds raised from ASEAN green bonds will only be used to finance or refinance eligible green projects that meet regulatory standards, either partially or in full.
“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,” CREIT president and CEO, Oliver Tan said in a statement.
The fixed-rate bonds, featuring a coupon rate of 7.0543% due in February 2028, are planned to be listed on the Philippine Dealing & Exchange Corp. on February 10, 2023.
The offering will be available from January 30 to February 3.
The funds from the offering will be utilized for a solar rooftop project and the acquisition of around 5 million square meters of land in Batangas.
CREIT plans to lease the land to solar power generators and operators connected to its sponsor, Citicore Renewable Energy Corp. (CREC).
The company stated that these units have secured contracts from the Department of Energy to build three utility-scale solar plants with a total capacity of 269 megawatts, which are part of CREC’s growth plans.
SB Capital and Investment Corp. and PNB Capital and Investment Corp. will serve the project’s joint local underwriters, issue managers, and selling agents.