Giant lender BDO Unibank Inc. has extended P5.6 billion project funding to the 197-megawatt Tuy solar project of Saavedra-led Citicore Renewable Energy Corporation (CREC), a Filipino firm that is calculatedly cementing its stature to become the biggest solar farm developer in the country with its 5.0-gigawatt installation goal.

Beyond that, BDO is eyeing to expand the project financing spectrum that it will be channeling to the renewable energy ventures of Citicore – including the company’s foray into onshore and offshore wind farm ventures and the targeted integration of energy storage systems (ESS) into its developments.

“CREC aims to diversify its renewable energy portfolio by adding onshore and offshore wind projects and battery energy storage systems in the medium to long term,” the company noted.

The capital it has been injecting into Citicore projects, according to BDO, is part of its reinforced “commitment to sustainable development as it continues to support the growth and expansion of clients’ renewable energy ventures which the bank considers as a cornerstone sector in financing.”

Citicore's Agrosolar initiative in one of its solar farm projects

BDO highlighted that it funneled project funding for the initial phase of the Tuy solar project of Citicore, which at commercial operations stage, could provide electricity to 32,308 households.

Onward to the company’s target of advancing its 1,000MW installations annually for solar within a five-year timeframe, Citicore conveyed that it will “again take this to the capital markets to raise the necessary funding for this vision,” and BDO Capital will act as the domestic lead manager and joint bookrunner.

Citicore’s RE investment trump card for lower rates

Citicore President and CEO Oliver Y. Tan said “our goal is to bring down the cost of electricity by assisting the government in its efforts to increase the share of renewable energy in the power generation mix.”

Though many power industry players still chase opportunities through the never-ending chain of fossil fuel trap, Citicore has been flipping the narrative with its pure renewable energy (RE) development blueprint; while also safeguarding food-energy nexus via its AgroSolar initiative at its solar farm developments.

Tan asserted “to the best of our ability, we want to offer affordable electricity for Filipinos since this is part of our vision to power a first-world Philippines using clean energy. Partners like BDO are helping make this a reality.”

And while an industrialized and first world Philippines appears like a very lofty ambition, the strategic partnership between Citicore as project sponsor-firm and its main lender BDO has been rewriting the investment playbook on the sphere of infrastructure development, one that will reposition RE as the power supply that could usher in not just a green energy future for the country but primordially to underpin its economic growth.

In leading the shift to renewable energy, Citicore will be cutting the cord from the continued dependence on fossil fuels – especially when it can already turn RE technologies as more dependable solution with eventual integration of energy storage systems.

BDO regards Citicore as one of its major clients; and it has been enthusiastically placing its bet on the company founded by Filipino tycoon Edgar Saavedra, who first rose to become a commanding force in business via his core company Megawide Construction Corporation, which has been instrumental in developing not just buildings and schools but many of the country’s infrastructure projects such as the Mactan airport in Cebu as well as transport systems.

“BDO and the Saavedra group have had a longstanding partnership in financing large-scale development projects, such as flagship infrastructure contracts undertaken by Megawide for the Philippine government,” the Sy-led bank emphasized.

The bank expounded that it also solidly supported Megawide “in its journey to diversify from pure construction to infrastructure development.”

Tan impassionedly narrated “our business relationship with BDO has spanned 15 years. It is among the companies that extended their support to us even when we were just starting, so this partnership is remarkably close to our hearts.”

Beyond financial backing that BDO extended to Megawide projects, the Citicore executive qualified that the bank remains a major lender-partner in the RE projects of the company.

“Our relationship with BDO has grown and we really value the trust, confidence, and opportunities given to us by BDO,” Tan stressed.

In the company’s 2022 listing for subsidiary CREIT, which is its real estate investment trust (REIT) unit, BDO Capital & Investment Corporation served as joint global coordinator for the initial public offering (IPO) and was also the lead local underwriter for that undertaking.

“As a key contributor to help accelerate the Philippine economy, the bank remains committed to creating a sustainable and equitable future while transitioning to a low-carbon, environmentally responsible, and socially inclusive economy,” BDO stated.