CREIT to raise P4.5 billion from ASEAN green bonds

MANILA, Philippines — Citicore Energy REIT Corp. (CREIT), the country’s first energy REIT, is eyeing to raise up to P4.5 billion from the issuance of ASEAN green bonds.

In a disclosure to the Philippine Stock Exchange, CREIT said its board of directors approved the issuance of up to P4.5 billion worth of unsecured fixed rate ASEAN green bonds, which will be comprised of a base offer of up to P3 billion with an oversubscription option of up to P1.5 billion.

CREIT said the proposed issuance would be subject to the approval of the Securities and Exchange Commission and the Philippine Dealing and Exchange Corp.

Proceeds of the green bond offering are intended   for the acquisition of multiple operating solar rooftop systems and various real estate properties suitable for utility scale solar power plants.

ASEAN green bonds refer to bonds which comply with the ASEAN green bonds standards, where the proceeds will be exclusively applied to finance or refinance, in part or in full, new and/or existing eligible green projects.

Eligible green projects include those for renewable energy, energy efficiency, pollution prevention and control, environmentally sustainable management of living natural resources and land use, clean transportation, climate change adaptation and green buildings.

CREIT debuted in the Philippine Stock Exchange in  February as the first energy-themed REIT in the country.

The company pioneered the agro-solar concept in the Philippines, which promotes the co-existence between solar power harvesting and vegetable farming.

Various root crops and vegetables are planted underneath the panels to augment income of community farmers living within the vicinity of CREIT’s properties, with a long-term goal of transforming Filipino communities through positive energy and empowering investments through green sources of revenue.

The company saw its net income surge by more than five times to P601 million in the first half from P89 million in the same period last year.