January 11, 2025 | 12:00am
MANILA, Philippines — Citicore Renewable Energy Corp. (CREC), chaired by tycoon Edgar Saavedra, has sealed a $115-million (P6.7 billion) investment from Indonesia’s state-owned energy firm Pertamina.
Pertamina, through PT Pertamina Power Indonesia (Pertamina NRE), will subscribe to about 2.23 billion CREC common shares at P3 apiece, equivalent to a 20-percent stake.
AlphaPrimus Advisors Inc. acted as CREC’s financial adviser for this transaction.
The share subscription deal marked Pertamina NRE’s first investment in the Philippines, paving the way for its strategic entry into the country’s booming renewable energy (RE) market.
CREC president and CEO Oliver Tan said this partnership would present “limitless opportunities” for both the Philippines and Indonesia to advance innovative RE technologies and practices.
Furthermore, this landmark deal is poised to accelerate the development of CREC’s extensive pipeline of RE projects across the country while facilitating its foray into Indonesia.
“It gives a wider stage to CREC’s unique end-to-end capabilities by opening doors in Indonesia even as we drive our developments in the Philippines at full speed,” Tan said.
The partnership with Pertamina NRE will likewise help position the company for potential expansion in other countries in Southeast Asia, CREC said.
The multimillion-dollar deal marked CREC’s second foreign government investment after the United Kingdom government’s flagship Mobilist program, which invested $12.5 million in CREC’s initial public offering in June last year.
CREC, a pure-play RE platform focused on and committed to the development of clean energy projects in the Philippines, wants to scale up its portfolio with a target of five gigawatts of green energy capacity by 2028.
The company is also the sponsor of Citicore Energy REIT, the country’s first RE-focused real estate investment trust.
Following the news regarding the latest deal, CREC’s shares increased by 5.76 percent to P3.49 each yesterday amid a 0.23-percent drop in the benchmark Philippine Stock Exchange index.
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