MANILA, Philippines — Citicore Renewable Energy Corp. (CREC) led by tycoon Edgar Saavedra obtained funding of up to P20 billion from Rizal Commercial Banking Corp. (RCBC) to bankroll the construction of its solar power projects.
It closed an initial P9 billion to finance multiple solar power plant projects with an initial capacity of 600 megawatts, which can then be increased to about 1 gigawatt, the company said in a statement on Monday.
“The structure is believed to be the first-of-its-kind project financing in the Philippines, which covers various project portfolios instead of the typical per-project financing structure,” CREC added.
Proceeds of the initial tranche will be earmarked for the development of projects in Batangas, Pampanga and Negros Occidental provinces.
RCBC Capital Corp. arranged the financing deal.
“RCBC’s support will assist us to fulfill our 1 GW target for this year. We thank RCBC for their trust in us and we will endeavor to meet our goals with excellence,” CREC president and CEO Oliver Tan said.
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The 1 GW of either ready-to-build or under-construction solar capacity is part of the company’s 5-GW target in the next five years.
The first and second phases of solar power facilities in Negros Occidental are expected to start commercial operations in September 2024 and September 2025, respectively.
The first and second phases of its projects in Batangas and Pampanga, meanwhile, are seen to begin operating commercially in December 2024 and December 2025, respectively.