Citicore Secures P5 Billion Investment from SM for Renewable Energy Expansion

Citicore Renewable Energy Corp. (CREC), under the leadership of tycoon Edgar Saavedra, has successfully raised P5 billion through the sale of its shares to SM Investments Corp., one of the Philippines’ leading conglomerates. This strategic transaction involved the sale of 1.884 billion common shares of Citicore Energy REIT Corp. (CREIT) at P2.6534 each, giving SM Investments a 28.79% stake in the renewable energy-focused REIT.

The capital infusion is earmarked for accelerating CREC’s ambitious solar power projects, which aim to develop 1,583 megawatts of solar capacity across eight locations nationwide. This move underscores both companies’ commitment to sustainable energy development and their confidence in the renewable sector’s growth potential.

SM Investments president Frederic DyBuncio highlighted the conglomerate’s strategy to back sustainable and emerging sectors, with renewable energy being a focal area. CREC is gearing up for a public listing in the second quarter, post-transaction, it will retain a 32.88% majority stake in CREIT, ensuring ongoing influence and stakeholder value.

The transaction was facilitated by BDO Capital and Investment Corp., signaling robust confidence in the partnership’s future and the anticipated synergies, especially considering the SM Group’s extensive energy requirements.

Oliver Tan, CREC’s president and CEO, remarked on the promising collaboration with SM, anticipating that it would unlock significant synergies, particularly in the energy sector, where CREC is a growing force. The planned initial public offering (IPO) of CREC, approved by the Philippine Stock Exchange, aims to further bolster its solar energy initiatives, with P35 billion allocated for capital outlays in the current year.

This partnership not only amplifies CREC’s capacity to enhance its solar power portfolio but also propels the broader agenda of sustainable energy solutions in the Philippines, setting a precedent for future investments in the renewable energy landscape.