MANILA – The country’s first clean energy-themed real estate investment trust (REIT) listing on Philippine Stock Exchange (PSE) aims to tap the tremendous opportunities in the local renewable energy market.
With its initial public offering (IPO) Tuesday, Citicore Energy REIT Corp. (CREIT) took advantage of the resources from the local bourse to partly fund its 1,500-megawatt expansion project for the next five years.
CREIT president Oliver Tan said the 1,500 MW pipeline projects are estimated to cost PHP70 billion, eyeing to inject new assets to the company every year.
Tan said CREIT is earmarking PHP3 billion as capital expenditure for this year.
Citicore chairman Edgar Saavedra said the country’s shift to clean energy is a “big opportunity” for renewable energy players here.
“Globally, there is a push in replacing fossil fuel power to more renewable sources. In fact, the mandate of the DOE (Department of Energy) is to increase the renewable portfolio from 20 percent to 40 percent renewable. And this translates to around 12,000 to 14,000 megawatt; 12,000 to 14,000 megawatts is around PHP1.5 trillion to PHP2 trillion,” Saavedra added.
Meanwhile, Finance Secretary Carlos Dominguez III called on clean energy companies to follow the pioneering move of Citicore in accessing the capital markets to fund green investments that will complement ongoing government efforts to help save the planet from the devastating effects of climate change.
In his pre-recorded message at Citicore listing at the PSE, Dominguez said the listing is “a perfect example of how the government and our own private sector can jointly build energy sufficiency and address issues related to global warming.”
He said since the Duterte administration resolved two years ago the issues that had prevented REITs from flourishing in the country, five such corporations have been established in the market with a total capitalization of PHP280.6 billion.
With Citicore as the sixth REIT, the total market capitalization of this “powerful financial instrument” will reach nearly PHP300 billion, or 1.4 percent of the country’s gross domestic product, he said.
“This is just the beginning. This powerful financial instrument holds much promise to help boost our economic recovery and unlock attractive and dependable investment opportunities for the average Filipino,” he added. (PNA)