Newly-listed Citicore Renewable Energy Corp. (CREC) bares tentative plans to raise capital possibly by next year via sustainable financing or so-called green bonds.
“Depending on interest rate conditions but most likely next year as we wait for a cut, for interest rates to go down,” Oliver Tan, CREC president, said.
CREC’s shares closed unchanged on its maiden trading day on Friday, at P2.70 per share, following a successful fundraising that attracted the United Kingdom’s MOBILIST program, an initiative of the British Investment Partnership supporting infrastructure development and green energy transition in the Philippines and Southeast Asia.
MOBILIST has partnered with the Philippine Stock Exchange to ensure greater investment in sustainable development in the Philippines through products listed on the PSE.
CREC is MOBILIST’s maiden IPO investment in the country focused on renewable energy. The company raised P5.3 billion from the sale.
CREC sold 1.96 billion shares, divided into1.78 billion primary shares and another 178.57 million secondary shares to cover the greenshoe or overallotment option at an offer price of P2.70 per share.
“We are delighted with the outcome of CREC’s initial public offering – a testament to strong investor confidence in our vision, plans and projects,” Edgar Saavedra, CREC chairman, said.
“Based on our experience, the IPO plays a significant role in shaping companies and our collaboration with the PSE and the Securities and Exchange Commission now extends to three companies – Megawide (Construction Corp.), Citicore Energy REIT Corp. and CREC. The success of our latest listing motivates us to exceed expectations in fulfilling our commitment to regulators and investors,” he said.
Tan said CREC is building a 5,000-megawatt renewable energy portfolio from varying sustainable sources by 2028.
“With the investments made during the IPO, we have gained even more confidence in our ability to develop and expand our green energy portfolio. These investments are integral to the country’s transition to a cleaner form of power and our hope is to contribute to a more sustainable and affordable energy solution for all,” he said.
The IPO is one of CREC’s biggest capital raising efforts following its mezzanine loan transaction with Pentagreen Capital in 2023, the financing arrangement with RCBC and the sale of CREIT shares to SM Investments Corp. held earlier this year.
“CREC’s goal is to contribute approximately 1.0 gigawatt of ready-to-build/under construction solar energy capacity in the Philippine energy mix per year in the next five years, equivalent to approximately 5.0 GW by 2028,” Tan said.
