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Thursday, March 28, 2024

Citicore Energy REIT clears issuance of ASEAN green notes valued at P4.5b

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The board of Citicore Energy REIT Corp. (CREIT) approved the issuance of up to P4.5-billion worth of unsecured fixed rate ASEAN green bonds.

The bonds comprise a base offer of up to P3 billion with an oversubscription option of up to P1.5 billion, subject to the approval of the Securities and Exchange Commission and Philippine Dealing and Exchange Corp.

The board also approved “the execution of any and all agreements and documents necessary for the acquisition of the multiple operating solar rooftop systems and various real estate properties suitable for utility scale solar power plants pursuant to the use of proceeds of the Corporation’s green bond offering.”

CREIT posted a net income of P601 million in the first six months, more than five times the P89 million it registered in the same period last year.

The company’s gross revenues in the first half rose to P664 million, up 408 percent year-on-year.

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Revenues consisted mainly of lease income from the guaranteed base lease from several solar plant companies.

Earnings before interest, taxes, depreciation, and appreciation (EBITDA) jumped 429 percent to P643 million.

“As the country’s first publicly-listed renewable energy REIT, we are now seeing the recurring rental revenue stream from our green asset portfolio. As detailed in the REIT Plan, we are committed to pay a steady dividend stream, with strong upside potential from new asset infusion from the Sponsor moving forward,” said CREIT president and chief executive officer Oliver Tan earlier.

“New fresh assets to be infused are expected to increase CREIT’s revenue base and earnings, which will eventually translate into higher dividends for our investors over the long-term,” Tan said.

The company declared a second cash dividend of P0.044 per share on July 20, representing the income in the second quarter and payable on September 14 to shareholders on record as of August 19.

The payout brought total cash dividends by the company in the first six months to P0.088 per share, up 151 percent declared for the entire year of 2021.

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