Citicore Renewable Energy Corporation (CREC) has secured a debt funding deal with Rizal Commercial Banking Corporation (RCBC) covering a portfolio of at least 600 MWdc and up to 1 GW of solar projects in the Philippines.
The deal, totalling approximately PhP 20 billion in funding, was arranged by RCBC Capital Corporation, with the initial installment amounting to PhP 9 billion receiving approval. The loan facility is the first of its kind in the country encompassing a large portfolio of various projects rather than a single project financing scheme.
Funds from the initial tranche will go for solar projects in the Batangas, Pampanga, and Negros Occidental provinces, to be installed in phases in 2024 and 2025, respectively. This funding will help CREC reach its target of installing 1 GW ready-to-build/under construction solar energy capacity this year. The company has set this 1 GW annual target for the next five years.
REGlobal’s Views: The Philippines has emerged as an important renewable energy destination in the ASEAN region the past few years and is witnessing significant investments flowing in its renewable energy sector. The country targets to achieve a 35 per cent renewable energy share in the power generation mix by 2030, and such large solar projects can help the country to reach its goal timely.
