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Bilyonaryo | Ed Saavedra turns to capital market to fund RE projects: Citicore REIT’s P10B IPO gets SEC nod

Posted on November 17, 2021

A real estate investment trust (REIT) unit of Citicore Renewable Energy Corp. has been cleared to launch its initial public offering estimated to fetch as much P10 billion.


Backed by Citicore Renewable Energy Corp. and Citicore Solar Tarlac 1, Citicore Energy REIT (CREIT) will offer to the public as much as 3.206 billion shares comprising 1.047 primary shares, 1.741 billion secondary shares and an oversubscription option of up to 418.34 billion shares, at a maximum price of P3.15 each


CREIT, an affiiate of bilyonaryo Edgar Saavedra’s Megawide Corp., expects to net up to P3.17 billion from the primary offer, which will be used for the acquisition of properties in Bulacan and South Cotabato.


Proceeds from the secondary offer could amount to P6.61 billion, assuming the overallotment option is fully exercised. These funds shall be reinvested in the Philippines, pursuant to the Real Estate Investment Trust Act of 2009.


The offer period will run from November 26 to December 3 in time with the listing of the shares scheduled on December 13.


CREIT aims to focus on income-generating renewable energy real estate properties, including land and properties used for harnessing power. The company owns the Clark solar power plant operating on a land leased from the Clark Development Corp. for a period of 25 years or until 2039.


It has mandated Unicapital Inc. and BDO Capital & Investment Corp. as joint global coordinators for the offer.


Unicapital will also serve as lead underwriter and issue manager while BDO Capital will serve as lead local underwriter alongside PNB Capital and Investment Corp. while Investment & Capital Corporation of the Philippines will act as participating underwriter.


The company also engaged CIMB Investment Bank Bhd and CLSA Ltd. as international bookrunners.


Citicore Energy REIT Corp. (C-REIT)is the country’s first energy REIT, focused on delivering excellent value and attractive returns to shareholders by responsibly harnessing nature’s resources and empowering communities. C-REIT operates as a REIT upon compliance with the Philippine REIT Law.

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