CREIT IPO attracts ESG investors

MANILA, Philippines — Green and environmental, social and governance (ESG) investors are particularly taking strong interest in Citicore Energy REIT Corp. (CREIT), according to bankers.

CREIT is offering to the public 2.5 billion common shares at P2.55 per share to raise P6.4 billion.

Oliver Tan, CREIT president and CEO, said the P2.55 per share has an implied dividend yield of seven percent of projected 2022 earnings.

“This is to provide more upside for investors,” Tan said.

Ed Francisco, president of BDO Capital and Investment Corp., said interest is strong because CREIT offers investment opportunities in sustainability projects.

“We expect to see strong interest in the offering, considering its pioneering status as an energy REIT and a sustainable investment alternative in the renewables sector, among others,” Francisco said.

Citicore will be the first solar company in the country to do a REIT offering after several property companies listed their REITs in the past two years.

“We are very happy with the turnout of our virtual meetings and the overall positive interest in CREIT among those we have met. Most of the institutions, especially those who have integrated ESG as part of their investment process, are highly attracted to CREIT’s underlying business, which is renewable energy, and its sustainable angle,” said Ben Thomas Pa-ares, president and CEO of Unicapital Inc.

CREIT tapped Unicapital Inc., BDO Capital and Investment Corp., PNB Capital and Investment Corp., Investment & Capital Corp. of the Philippines (ICCP), CLSA Limited and CIMB Investment Bank Bhd (International Bookrunners) as its underwriters.

The offer period will run from Feb. 2 to 8 while the listing of the company’s shares has been set on Feb. 17.

CREIT will use net proceeds from its initial public offering to acquire properties within the Citicore Group, including properties owned by Citicore Solar Bulacan Inc. and Citicore South Cotabato, which operate solar plants.