Citicore Renewable Energy Corp. (CREC) said Monday it secured a financing arrangement with Rizal Commercial Banking Corp. (RCBC) for up to P20 billion for the construction of multiple solar power plant projects with a combined installed generating capacity of 600 megawatts to 1,000 MW.
The initial tranche involves P9 billion arranged by RCBC Capital Corp.
CREC said the project financing structure is believed to be the first-of-its-kind in the Philippines, which covers various project portfolios instead of the typical per-project financing structure.
The proceeds of the initial funding tranche will be applied towards CREC’s development of certain solar power plant projects in Batangas, Pampanga, and Negros Occidental.
The proceeds of subsequent tranches will be applied towards the completion of additional solar power projects in or additional generating capacity from CREC’s pipeline of projects in various stages of development.
“RCBC’s support will assist us to fulfill our 1GW target for this year,” said CREC president and chief executive Oliver Tan in a statement.
“We thank RCBC for their trust in us and we will endeavor to meet our goals with excellence,” he said.
The solar power plant projects in Batangas, Pampanga and Negros Occidental are integral to CREC’s target of contributing 1GW of ready-to-build/under construction solar energy capacity per year over the next five years.
CREC expects commercial operation for the first and second phases of the Negros Occidental project to start in September 2024 and 2025, respectively.
Meanwhile, the company expects the commercial operation of the first and second phases of each of the Batangas and Pampanga projects to start in December 2024 and 2025, respectively.