Citicore Renewable Energy Corp. (CREC) has secured a financing arrangement with Rizal Commercial Banking Corp. (RCBC) for the funding of multiple solar power plant projects.
CREC said the financing deal arranged by RCBC Capital Corp. is slated to reach up to P20 billion starting with the signing of an initial tranche of P9 billion.
The company said the structure is believed to be the first-of-its-kind project financing in the Philippines as ir covers various project portfolios instead of the typical per-project financing structure.
The financing deal is set to fund a combined installed generating capacity of at least 600 megawatts (MW) and up to approximately 1,000 MW of solar energy capacity.
Proceeds of the initial P9 billion will be used for the development of certain solar power plant projects in Batangas, Pampanga and Negros Occidental.
Proceeds of subsequent tranches will be used for the completion of additional solar power projects or additional generating capacity from CREC’s pipeline of projects in various stages of development.
Oliver Tan, CREC president and chief executive officer, said RCBC’s support will assist the company in fulfilling its 1,000 MW target for this year.
CREC added its solar power plant projects in Batangas, Pampanga and Negros Occidental are integral to the target of contributing 1,000 MW of ready-to-build and under construction solar energy capacity per year over the next five years.
The expected commercial operation dates of the first and second phases of the Negros Occidental project are in September 2024 and 2025, respectively.
The expected commercial operation dates of the first and second phases of each of the Batangas and Pampanga projects are in December 2024 and 2025, respectively.
