Citicore board approves P4.5-B bond issue

IN a disclosure to the Philippine Stock Exchange and the Securities and Exchange Commission, the board of directors of Citicore Energy REIT Corp. (CREIT) approved the issuance of up to P4.5-billion unsecured fixed-rate Asean green bonds worth P3 billion with an oversubscription option of P1.5 billion.

The board also approved the execution of agreements and documents needed to acquire the operating solar rooftop systems and different real estate properties for utility-scale solar power plants under the use of the corporation’s bond offering.

CREIT posted a net income of P601 million in the first six months of 2022. This is more than five times the P89 million it earned during the same period previous year.

The company’s gross earnings in the first half increased by 408 percent annually to P664 million. Earnings before interest, taxes, depreciation and appreciation also increased by 429 percent to P643 million.

The company also announced a second cash dividend of P0.044 per share, which reflected the second quarter’s earnings and was due on September 14 to shareholders on record as of August 19. The payout increased the company’s total cash dividends in the first half to P0.088 per share, up 151 percent from the 2021 full-year forecast.

“As the country’s first publicly listed renewable energy REIT, we are now seeing the recurring rental revenue stream from our green asset portfolio,” said Oliver Tan, CREIT president and chief executive officer.

“As detailed in the REIT plan, we are committed to paying a steady dividend stream, with strong upside potential from new asset infusion from the sponsor moving forward,” he added.

Tan pointed out that the new assets “increase” CREIT’s revenue base and earnings, which would translate into higher dividends for its investors.