Citicore Renewable Energy Corp. (CREC), an affiliate company of Megawide Construction Corp., plans to tap BDO Unibank Inc. (BDO) for additional funding requirements as it embarks on its continued renewables expansion.
The company said it would again take to the capital markets to raise the necessary funding for its vision of 1,000 megawatts of solar energy projects every year for the next five years, with BDO Capital acting as the domestic lead manager and joint bookrunner.
CREC did not provide additional details, but welcomed the strong support of BDO for its projects and that of parent firm Megawide.
“Our goal is to bring down the cost of electricity by assisting the government in its efforts to increase the share of renewable energy in the power generation mix. To the best of our ability, we want to offer affordable electricity for Filipinos since this is part of our vision to power a first-world Philippines using clean energy. Partners like BDO are helping make this a reality,” said CREC president and chief executive Oliver Tan.
BDO provided project financing for the development of the largest solar plant in Batangas, CREC’s Citicore Solar Batangas 1 project.
The project, comprised of two solar plants in Tuy, Batangas, will generate close to a 197-megawatt peak once operational, which can power up to 32,308 households.
BDO and the Saavedra group have had a longstanding partnership in financing large-scale development projects such as flagship infrastructure contracts undertaken by Megawide for the government.
“Our business relationship with BDO has spanned 15 years. It is among the companies that extended their support to us even when we were just starting, so this partnership is remarkably close to our hearts,” said Tan.
BDO also helped in the CREC and Megawide group’s journey to diversify from pure construction to infrastructure development.
The bank provided a line facility for Megawide’s construction business early on, and during its initial public offering in 2011, BDO Capital was its underwriter.
BDO also provided the majority of project financing requirements when Megawide won its crown jewel asset, the Mactan-Cebu airport.
It extended the same opportunity when Megawide won the contract for the Paranaque Integrated Terminal Exchange (PITX), the country’s first landport.
Tan said this support is why they chose to continue the partnership with BDO for CREC and its projects in renewable energy.
“Our relationship with BDO has grown and we really value the trust, confidence, and opportunities given to us by BDO,” he said.
CREC aims to diversify its renewable energy portfolio by adding onshore and offshore wind projects and battery energy storage systems in the medium to long term.
CREIT, the real estate investment trust (REIT) subsidiary of CREC, was the first renewable energy-themed REIT to be listed on the Philippine Stock Exchange back in 2022.
BDO Capital & Investment Corp. was a joint global coordinator for the IPO and served as a lead local underwriter on the project.
The IPO has been adopted as a case study by regional banks in Singapore and Malaysia.
