MANILA, Philippines — Citicore Energy REIT Corp. (CREIT) is set to debut as the country’s first energy real estate investment trust (REIT) next month after securing regulatory approvals.
In a statement, CREIT said it received pre-effective approval last January 13 from the Securities and Exchange Commission (SEC) for its registration statement filed last Aug. 18, 2021 for its planned initial public offering (IPO).
The latest approval was based on updated third quarter financial and operating results for 2021.
In a separate notice posted on its website, the Philippine Stock Exchange (PSE) said it approved the listing of the country’s first energy REIT.
CREIT will sell up to 1.047 billion primary shares and 1.74 billion secondary shares, with an over-allotment option of up to 418.34 million shares at a maximum price of P3.15 apiece, raising up to P10.1 billion.
Net proceeds will be used to acquire properties within the Citicore Group, particularly to fund the company’s intended acquisition of the properties owned by Citicore Solar Bulacan Inc. and nv vogt Philippines Solar Energy One Inc. (SE1 or Citicore South Cotabato).
Citicore Bulacan and Citicore South Cotabato operate solar power plants on those properties and are wholly owned indirect subsidiaries of Citicore Renewable Energy Corp. (CREC).
Based on the PSE’s approval, the proposed offer period will run from Feb. 2 to 8, with a target listing date of Feb. 17.
“CREIT is pleased to inform you that our application both to the SEC and the PSE for the first Energy REIT, an alternative asset class combining the benefits of a stable and sustainable investment – for the environment, our communities, and our children’s future – has been approved. We are grateful for the insights and wisdom of both the SEC and PSE, for approving a landmark REIT product, paving the way for diversification of REIT products, ultimately benefitting the investing public,” CREIT president and CEO Oliver Tan said.
CREC, a subsidiary of Citicore Power Inc. (CPI), is one of the company’s sponsors and is part of the Citicore Group of Companies, one of the leading renewable energy development group of companies in the country.
The Citicore Group pioneered the agro-solar social concept, which runs in most of the group’s plants that promote the shared goals of clean power generation, agricultural production and socio-economic development.
Unicapital Inc., the issue manager and BDO Capital & Investment Corp. are the joint global coordinators. PNB Capital and Investment Corp. and Investment & Capital Corp. of the Philippines are the local underwriters while CIMB Investment Bank Bhd and CLSA Ltd. are the international bookrunners.
CREIT expects to offer a stable dividend payout in accordance with the REIT Law. The company also believes it offers a unique value differentiation, with a green asset portfolio anchored on investing in and for the future.
“This business model, we believe, is cycle-resistant as solar power generation is an essential industry, further supported by government programs, and has a clear plan for long-term growth. With the search for attractive returns, alongside a strong and effective ESG advocacy as criteria for a sound market investment, CREIT comes in as a practical alternative,” Tan said.
The Citicore Group has a pipeline of 1,500 megawatts-direct current (MWdc) solar plant capacity in the next five years with 120.5-MWdc underway. To date, Citicore is generating an installed capacity of 163-MW.