BDO Unibank Inc. remains committed to sustainable development by supporting its clients’ renewable energy (RE) ventures through financing.
Saavedra-led Citicore Renewable Energy Corp. (CREC), an affiliate of Megawide Construction Corp., recently received funding for its RE project from the Sy-led bank.
“Our goal is to bring down the cost of electricity by assisting the government in its efforts to increase the share of renewable energy in the power generation mix,” CREC President and Chief Executive Officer Oliver Tan said.
“To the best of our ability, we want to offer affordable electricity for Filipinos since this is part of our vision to power a first-world Philippines using clean energy. Partners like BDO are helping make this a reality,” he added.
CREC’s Citicore Solar Batangas 1 project, the largest in the province, has secured financing from BDO worth P5.6 billion.
The two solar plants in Tuy, Batangas, are expected to generate close to 197 megawatts at peak once operational and can provide electricity to more than 32,000 households. It is targeted for completion by December this year and can power up to 32,308 households.
The project follows the typical funding structure of 70-30 debt to equity, 70 percent through debt, while the balance will be generated through equity infusion from CREC’s parent firm Citicore Holdings Investment Inc.
BDO and the Saavedra group have a longstanding partnership in financing large-scale development, such as the flagship infrastructure contracts undertaken by Megawide for the government.
“Our business relationship with BDO has spanned 15 years. It is among the companies that extended their support to us even when we were just starting, so this partnership is remarkably close to our hearts,” Tan said.
CREC’s subsidiary Citicore Energy REIT Corp. (CREIT), the first renewable energy-themed REIT to be listed on the Philippine Stock Exchange in 2022, tapped BDO Capital & Investment Corp. as part of a joint global coordinator for its initial public offering and acted as lead local underwriter for the project.
“The company will again take this to the capital markets to raise the necessary funding for this vision, with BDO Capital acting as the domestic lead manager and joint bookrunner,” BDO said in a statement.
On Tuesday, shares of BDO rose by P5.80 to close at P152.80 apiece, while CREC’s shares were unchanged at P3.05 each. Megawide’s shares, meanwhile, dropped by a centavo to P2.62 apiece, while CREIT shares also fell by a centavo to close at P2.99 each.
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