CREIT plans up to P4.5 billion ASEAN green bonds issue

MANILA, Philippines — Citicore Energy REIT Corp. (CREIT) plans to tap the capital markets for the first time through the issuance of ASEAN green bonds within the fourth quarter to accelerate the company’s real estate asset portfolio growth.

CREIT is issuing 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.

“The planned exercise will be part of the company’s levering up program – from zero debt currently to a minimum leverage of 35 percent of its invested capital – to fund the acquisition of new properties and sustain its growth momentum,” the company said in a stock exchange filing.

CREIT said ASEAN green bonds are “specific purpose bonds where proceeds will be exclusively applied to finance or refinance, in part or in full, new and/or existing eligible green projects, and that comply with the ASEAN Green Bond Standards.”

Proceeds of the company’s maiden bond issuance are intended to finance the acquisition of solar rooftop systems to be leased out to an affiliate solar power operator, and land parcels totaling about 500 hectares planned to host affiliate solar power developers and operators.

CREIT recently received a PRS Aa plus rating, with a stable outlook, from the Philippine Rating Services Corp.

The assigned credit ratings and corresponding outlook took into consideration CREIT’s unique portfolio of renewable energy REIT assets that enjoy stable full occupancy from lessees with cycle-resilient operations, reputable sponsors, strong profitability with high margins, and sound financial position and significant flexibility for expansion.

“This capital recycling opportunity available to CREIT will provide it with more room to raise funds and further flex its financial muscle to enhance and sustain its long-term shareholder value creation,” the company said.

CREIT’s sponsor, Citicore Renewable Energy Corp. (CREC), is one of the pioneers in solar power generation.

CREC is looking to expand its renewable energy portfolio through other technologies such as hydro and wind, with a robust project pipeline of 1,500 MWdc in the next five years.