Citicore Energy REIT Corp said it will tap the capital markets for the first time through the issuance of ASEAN green bonds in the fourth quarter to accelerate its real estate asset portfolio growth.
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 invested capital—to fund the acquisition of new properties and sustain its growth momentum.
CREIT said in its registration statement submitted to the SEC it would offer P3 billion, with an oversubscription allotment for another P1.5 billion. The proceeds of the maiden bond issuance will fund the acquisition of solar rooftop systems to be leased out to an affiliate solar power operator, and land parcels totaling about 500 hectares to host affiliate solar power developers and operators—both considered eligible green projects under the Citicore Power Inc. green financing framework.
“We want to fast-track this initiative to facilitate our growth trajectory, as disclosed in the REIT Plan, at the same time keep our borrowing costs at manageable levels, considering the continued pressure on global interest rates. The success of this acquisition will pave the way for more future acquisitions of real estate properties ideal for utility scale solar plants, thus cementing CREIT as the largest renewable energy REIT landlord in the Philippines,” said CREIT president and chief executive Oliver Tan.