Indonesian state-owned enterprise Pertamina New & Renewable Energy, formed a strategic partnership with Citicore Renewable Energy Corp. (CREC) through a landmark share subscription agreement.
Pertamina NRE will subscribe to a 20-percent interest in CREC, equivalent to 2.23 million CREC common shares, at P3 apiece, raising P6.69 billion or about $115 million.
The partnership with CREC marks Pertamina NRE’s first investment in the Philippines and its entry to the country’s booming renewable energy investment climate, now ranked second-most attractive emerging market for renewable energy investment by BloombergNEF.
Pertamina NRE also gained access to CREC’s unique expertise in project development and engineering, procurement and construction.
CREC will have the opportunity to work with Pertamina NRE to develop renewable energy projects in Indonesia, allowing for the company’s potential expansion in the region.
“The partnership with Pertamina NRE presents limitless opportunities for Indonesia and the Philippines to collaborate on innovative technologies and practices in renewable energy. It gives a wider stage to CREC’s unique end-to-end capabilities by opening doors in Indonesia even as we drive our developments in the Philippines at full speed,” said CREC president and chief executive Oliver Tan.
Proceeds from the agreement will contribute to the development of CREC’s pipeline of renewable energy projects nationwide in line with its goal of contributing about 1 gigawatt (GW) of green energy capacity per year as part of its 5GW in five-year roadmap.
With Southeast Asia seen as a driver in the demand growth for renewable energy worldwide, the strategic partnership between CREC and Pertamina NRE will benefit both the Philippines and Indonesia in accelerating national as well as regional renewable energy goals, the two companies said.
AlphaPrimus served as the financial adviser to CREC for the transaction.
CREC is a leading pure-play renewable energy company committed to the development and operation of solar, hydro and wind projects in the Philippines.
Pertamina NRE is a subsidiary company fully owned by Pertamina, Indonesia’s state-owned energy corporation, and is specifically responsible for managing all power generation and new and renewable energy development, focusing on gas-based power generation, geothermal energy and other renewable energy sources like solar and wind power and also green business like nature-based solutions and carbon business.