Citicore Energy REIT lists P4.5-B bonds, plans aggressive expansion

Tycoon Edgar Saavedra’s solar power-focused Citicore Energy REIT Corp. completed a maiden P4.5-billion bond sale, which will help bankroll an aggressive expansion pipeline and establish the company as the country’s largest renewable energy landlord.

Citicore Energy REIT said on Friday the Asean Green Bonds were listed on the Philippine Dealing and Exchange Corp.

In an interview with reporters, company president Oliver Y. Tan said said the offer was oversubscribed 1.65 times, signaling strong demand from investors.

The bonds, which were offered from Jan 30 through Feb. 3, will bear a coupon rate of 7.0543 percent and mature on Feb 10, 2028.

“This listing marks our second capital raising activity in just twelve months, following our initial public offering almost a year ago,” Tan said.

“We are very grateful for the investment community’s continued favorable reception and the support of our joint lead underwriters, regulators, and participants. Without all of you, this exercise would have not been a successful offering, especially amid a looming global recession,” he added.

The bond proceeds will be used to grow the company’s asset portfolio, which is targeted to grow almost four times to seven million square meters.

The land parcels will then be leased out to solar power generators and operators, who will construct three utility-scale solar plants with a total projected generation capacity of 269 megawatt-peak of direct current.

Citicore Energy REIT said their current expansion plans would cement its status as the country’s biggest renewable energy landlord.

SB Capital Investment Corp. and PNB Capital and Investment Corp. were the transaction’s joint local underwriters, issue managers, bookrunners, and selling agents. Security Bank Corp.’s trust and asset management group was tapped as the trustee.

Meanwhile, Securities and Exchange Commission chair Emilio B. Aquino recognized the company’s pioneering role in growing the country’s capital and energy markets.

“[Citicore Energy REIT] once again sets another first this time, as the first REIT company to issue Asean Green Bonds. In addition to its REIT shares listed in the [Philippine Stock Exchange], the issuance of such bonds has also contributed to the diversification of the investment products available to the capital market,” Aquino said in a recorded message on Friday.

“This will ultimately redound to the country’s National Renewable Energy Program, which aims for renewables to comprise 35 percent of power generation by 2030, and 50 percent by 2040,” he added.