THE Securities and Exchange Commission (SEC) issued a permit to sell to Citicore Energy REIT Corp. (CREIT) for its maiden P4.5 billion ASEAN Green Bond offering.
The offer will consist of a base principal amount of P3 billion with an oversubscription option of up to P1.5 billion.
“We are hopeful that the offer’s objective of funding green projects will translate to a favorable reception from the market,” Oliver Y. Tan, president and chief executive officer of CREIT, said in a press release on Monday.
The fixed-rate bonds are scheduled to be listed with the Philippine Dealing & Exchange Corp. on Feb. 10, 2023 with a coupon rate of 7.0543% due in February 2028.
The offer period will run from Jan. 30 to Feb. 3. It will have SB Capital and Investment Corp. and PNB Capital and Investment Corp. as its joint local underwriters, issue managers and selling agents.
ASEAN green bonds’ proceeds are meant to be exclusively used to finance or refinance, in part or in full, new or existing eligible green projects that comply with regulatory standards.
“We constantly explore and prioritize investment alternatives that would allow us to accelerate CREIT’s growth trajectory and green asset portfolio, to enable us to reward our shareholders with greater value,” Mr. Tan said.
Proceeds of the offering will be used for the development of a solar rooftop system project and the acquisition of 5 million square-meter land parcels in Batangas.
CREIT aims to lease out the land parcels it will be able to purchase to solar power generators and operators affiliated with its sponsor, Citicore Renewable Energy Corp. (CREC).
“These units have secured Solar Energy Service Contracts from the Department of Energy to construct three utility-scale solar plants, with a total projected generation capacity of 269 megawatts direct current and form part of CREC’s expansion pipeline,” the company said.
On the stock market on Monday, shares in CREIT closed unchanged at P2.46 apiece. — Justine Irish D. Tabile