CREC secures ₱20-B financing from RCBC
Citicore Renewable Energy Corporation (CREC) reported that it has secured financing arrangement of up to ₱20 billion with Rizal Commercial Banking Corporation (RCBC) to bankroll its multiple solar power plant projects, the first-of-its-kind project financing in the Philippines.
In a statement, the firm said the projects will have a combined installed generating capacity of at least 600Mwdc (megawatts defined conditions) and up to approximately 1GW of solar energy capacity.
The financing deal, arranged by RCBC Capital Corporation, is slated to reach up to ₱20 billion in funding, starting with the signing of an initial tranche of P9 billion.
The structure is believed to be the first-of-its-kind project financing in the Philippines, which covers various project portfolios instead of the typical per-project financing structure.
The proceeds of the initial funding tranche will be applied towards CREC’S development of certain solar power plant projects in Batangas, Pampanga, and Negros Occidental.
The proceeds of subsequent tranches will be applied towards the completion of additional solar power projects in or additional generating capacity from CREC’S pipeline of projects in various stages of development.
“RCBC’S support will assist us to fulfill our 1GW target for this year. We thank RCBC for their trust in us and we will endeavor to meet our goals with excellence,” said CREC President and CEO Oliver Tan.
The solar power plant projects in Batangas,
Pampanga and Negros Occidental are integral to CREC’S target of contributing 1GW of ready-to-build/under construction solar energy capacity per year over the next five years. The expected commercial operation dates for the first and second phases of the Negros Occidental project are in September 2024 and 2025, respectively. Meanwhile, the expected commercial operation dates for the first and second phases of each of the Batangas and Pampanga projects are in December 2024 and 2025, respectively.