CITICORE Renewable Energy Corp. (CREC) plans to spend around P35 billion this year, primarily on renewable energy projects, its chief executive officer said.
“For 2024, [the capital expenditure budget is set at] approximately P35 billion,” CREC President and Chief Executive Officer Oliver Y. Tan told reporters on Wednesday.
As part of a five-year plan, the company intends to deploy one gigawatt of solar projects this year.
Mr. Tan noted that funding for the first gigawatt of projects currently under construction has already been “procured and secured.”
CREC has ongoing construction in four sites in Batangas, two in Quezon province, two in Pangasinan, one in Pampanga, and one in Negros Occidental, scheduled for completion by 2024.
For the second gigawatt of projects, Mr. Tan said that it will be financed through the planned initial public offering (IPO).
“The next batch, we are consolidating the land, medyo nakakalahati na kami (we’re already halfway through). Our pipeline projects are in clustered areas, so we’re not like strike anywhere. So, it’s going to be multiple phases in one region.”
On Wednesday, the Securities and Exchange Commission (SEC) approved CREC’s planned P12.9-billion IPO.
CREC is set to offer up to 2.9 billion common shares at a maximum price of P3.88 apiece, including an additional 435 million outstanding common shares for overallotment.
The company anticipates netting over P10.71 billion from the primary offer for capital expenditure (capex), pipeline development for solar energy power plants, and general corporate purposes.
CREC’s planned IPO is scheduled to run from March 4 to 8, with listing on the main board of the Philippine Stock Exchange on March 15, as per the latest timeline submitted to the SEC.
The Saavedra-led energy company manages a diversified portfolio of renewable energy generation projects, power project development operations, and retail electricity supply. It is the parent firm of listed Citicore Energy REIT Corp. — Sheldeen Joy Talavera