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Citicore vows to accelerate capacity expansion in 2023
Posted on October 30, 2022
Citicore Renewable Energy Corp., the sponsor of the country’s first renewable energy-themed REIT Citicore Energy REIT Corp., is ramping up capital investments to help boost the country’s green energy supply and support the new government’s energy-sufficiency agenda.
It said that while increasing costs of capital, borrowings and raw material inputs had discouraged expansion activities from most players this year, CREC would embark on an aggressive growth program starting next year.
“CREC is planning to ground break at least three solar plant projects, with an aggregate capacity of 570 megawatts in 2023 – 270 megawatts in the first half and another 300 megawatts in the second semester,” CREC chief executive and president Oliver Tan.
CREIT is looking to acquire land that will increase its portfolio to more than 700 hectares from almost 200 hectares, cementing the company’s position as the largest landlord of solar farms in the country.
“CREIT is eyeing approximately 500 hectares of land across the Philippines that will be leased out to solar power operator tenants,: Tan said.
CREIT filed a registration statement with the Securities and Exchange Commission for the issuance of its maiden ASEAN Green Bonds, with a base offer of P3.0 billion and an oversubscription option of up to P1.5 billion.
The proposed CREIT Bonds received an AA+ rating with stable outlook from the Philippine Rating Services Agency. CREIT said the proceeds would be used to acquire various parcels of land to be leased out to solar plant operators.
“Even on a zero or slow organic power demand growth scenario, replacing the requirement from existing fossil fuel users who wish to shift to solar power will be a sizeable market for renewable energy players to fill,” Tan said.