Citicore Renewable Energy Corp, one of the major solar power producers in the Philippines, has revealed plans to go public in 2023. It anticipates that the share sale will contribute to a $4 billion investment in solar projects over the following five years. According to the statement, the IPO proceeds will enable Citicore to invest $800 million this year to increase its current generation capacity from 241 MW to 1 GW, and a total of $4 billion over five years to reach an installed capacity of 5 GW.

In the Philippines, the company already has many solar projects operating, including the Clark Solar Plant under Pampanga, as well as farms in its leasehold and freehold land portfolios. Additionally, Citicore is seeking seven offshore wind projects with a 3 GW anticipated capacity. 

According to reports, the country intends to increase the proportion of renewable energy sources in its power mix to 35 per cent in 2030 and 50 per cent in 2040. In 2020, renewables accounted for 20 per cent of total electricity output, with coal power accounting for about 60 per cent.

REGlobal’s Views: While many new instruments have emerged in the renewable energy financing space, raising finance through IPOs is still a secure and trusted means for companies in this space. With the renewable energy markets growing at a rapid pace and developers keen on expanding their market shares, IPOs are an ideal instrument to raise finance for solar power projects.