7 June, London/Manila. The UK government's MOBILIST programme is supporting the Philippines in its transition to renewable energy through an investment in the initial public offering (IPO) of Citicore Renewable Energy Corporation (CREC) on The Philippine Stock Exchange, Inc. (PSE).
MOBILIST invested alongside several private sector investors to take up 22% in CREC shares, with the total IPO valued at approximately $86 million. CREC is the first renewable energy generator to list on the PSE this year. In July 2023, MOBILIST and the PSE established a partnership to ensure greater investment in sustainable development in the Philippines via products listed on the PSE.
CREC is the second-largest solar energy generator in the Philippines in terms of installed solar capacity[1], and had ten operating solar projects with a combined gross installed capacity of 285.1MW as of 31 December 2023. The company estimates that its 20 pipeline solar and wind projects, in various stages of advanced development and ready-to-build/under-construction phases, will reduce carbon emissions by an aggregate of approximately 3.3 million tons upon completion over the next three years. CREC will utilise the listing proceeds to fund capital expenditures and pipeline development for solar energy plants and battery energy storage systems, among others. According to the Philippine Department of Energy, the Philippines needs US$120 billion in investment by 2040 to realise its untapped renewable energy potential.[2]
His Majesty's Ambassador to the Philippines, Laure Beaufils, said:
I am proud the UK and the Philippines are working closely on climate action in general, and renewable energy in particular. Through MOBILIST's investment in Citicore Renewable Energy Corporation, the UK is further supporting the Philippines in realising its energy transition. Our $12.5 million investment in CREC will help catalyse investments towards an approximately 1GW of additional solar energy capacity per year over the next five years in the country, making clean, reliable and affordable energy a reality for people in the Philippines.
Oliver Y. Tan, President and CEO of CREC, said:
Citicore Renewable Energy Corporation is honoured to be the maiden (IPO) investment of MOBILIST in the Philippines. This landmark investment in the CREC IPO, MOBILIST'S first IPO investment in the Philippines, signals the strong support and confidence of the UK in the Philippines' energy transition plan, with CREC at the forefront of this renewable energy revolution with its development and operation of various renewable platforms.
MOBILIST is an intervention under the wider British Investment Partnership (BIP), the initiative by which the UK will deliver packages of finance and technical assistance to support infrastructure development and green transition in the Philippines and across the Southeast Asia region. BIP has backed investments of £32 million in hydro and solar projects in the Philippines and has seen private investments in biomass of $350 million.
Ross Ferguson, FCDO MOBILIST Programme Lead, says:
MOBILIST is proud to advance our partnership with the PSE by participating in an IPO we believe will generate important learnings within the domestic market to pave the way for other businesses devoted to enabling a secure, clean and expanding energy supply for the people of the Philippines. CREC's listing demonstrates that public markets can finance sustainable development at scale and potentially play a powerful role in financing the energy transition in the Philippines and other emerging markets.
Ramon S. Monzon, President and Chief Executive Officer at PSE, says:
I am pleased that MOBILIST made its first Philippine IPO investment less than a year since our partnership was launched. I hope this milestone investment in Citicore Renewable Energy Corporation will pave the way for more listing applicants whose businesses are aligned with the thrust of MOBILIST to receive funding and technical or advisory assistance. PSE is proud to be a conduit in this climate action program, which also supports the Exchange's overall sustainability agenda.
About Citicore Renewable Energy Corporation
Citicore Renewable Energy Corporation (CREC) is a leading pure-play renewable energy platform committed to the development and operation of solar, hydro, and wind projects in the Philippines. CREC, directly and through its subsidiaries and joint venture, manages a diversified portfolio of renewable energy generation projects, engages in power project development operations, and engages in retail electricity supply. CREC is also the sponsor of the Philippines' first renewable energy real estate investment trust, Citicore Energy REIT Corporation.
