Citicore pumps IPO funds into solar venture with Ayala

Construction tycoon Edgar Saavedra’s Citicore Renewable Energy Corp. injected additional capital into a solar power venture with the Ayala Group’s AC Energy Corp. and other renewable energy projects for a total of P2.3 billion.

Citicore Renewable is the sponsor of Citicore Energy REIT Corp. (CREIT), a pioneering energy-themed real estate investment trust.

In a stock exchange filing made by CREIT, the latest disbursements as of June 2022 accounted for 38 percent of funds raised by Citicore Renewable during its P6.4-billion initial public offering (IPO) last February.

A significant chunk of the amount went to Arayat Mexico Solar Farm, a 50-50 venture with AC Energy, the renewable power arm of conglomerate Ayala Corp.

The disclosure showed P1.55 billion had been deployed for Phase 1 of the project, which involves the construction of a 72-megawatt solar farm in Pampanga.

Started on June 24, 2021, the project would have enough capacity to power 45,000 households while avoiding about 72,000 metric tons of carbon emissions annually, CREIT said.

The firm also deployed P317.55 million for Phase 2 of the Arayat Mexico Solar Farm, which would expand capacity to 116 MW by the first quarter of 2023.

The remaining disbursements went to AFAB Solar Rooftop Phase 1, a 6.6-MW project being developed by subsidiary Sunny Side Up Power Corp., and a 20-MW Isabela hydropower project.

CREIT and Citicore Renewable are affiliates of Megawide Construction Corp., a leading contractor and infrastructure company.

Editor’s Note: The previous version of this story erroneously stated the spending was made by CREIT. It was the REIT sponsor, Citicore Renewable Energy Corp., that made the mentioned disbursements. We apologize for the error.