UK-based Mobilist invests in renewable energy IPO in the Philippines

British Ambassador to the Philippines Laure Beaufils visited the ongoing construction of Citicore Renewable Energy Corporation’s (Crec) largest solar power plant in Batangas on August 16 – the largest in its portfolio, which will be built in two phases over two years. The solar power plant is expected to provide a much-needed boost to the Luzon Grid once completed.

Following the UK government’s investment in Crec’s Initial Public Offering (IPO) on the Philippine Stock Exchange, Inc. (PSE), the visit provided a first-hand look at the impressive scale of Crec’s solar plant operations. Collaborations such as this underscore the UK’s continued commitment to supporting the global Sustainable Development Goals and promoting strong public partnerships to support clean energy transformations in emerging markets like the Philippines.

Mobilist invested alongside several private sector players, with a combined IPO value of approximately $86 million. Crec is the first renewable energy producer to list on the PSE this year. In July 2023, Mobilist and PSE partnered to bring greater investment in sustainable development to the Philippines through PSE-listed products.

British Ambassador to the Philippines Laure Beaufils (second from left) visits the largest solar power plant Citicore Renewable Energy Corporation in Batangas. PHOTO FROM THE BRITISH AMBASSADOR

Crec is the second largest solar power producer in the Philippines by installed solar capacity. As of December 31, 2023, the company had ten operational solar projects with a total gross installed capacity of 285.1 MW. The company estimates that its 20 solar and wind projects, in various stages of advanced development and ready for construction/under construction, will collectively reduce carbon dioxide emissions by approximately 3.3 million tons upon completion over the next three years.

Crec will use the proceeds from the listing to fund capital expenditures and develop pipelines for solar power plants and battery storage systems, among other things. According to the Philippine Department of Energy, the Philippines needs $120 billion in investments by 2040 to realize its untapped renewable energy potential.

Ambassador Beaufils said: “I am thrilled to see a tangible demonstration of the UK-Philippines climate partnership. Through the UK Government’s investment in Citicore Renewable Energy Corporation, the UK is further supporting the Philippines in its energy transition.”

“Our $12.5 million investment in Crec will help accelerate investment in approximately 1 GW of additional solar power capacity per year in the country over the next five years, making clean, reliable and affordable energy a reality for the people of the Philippines,” she added.

On the other hand, Oliver Tan, President and CEO of Crec, said, “Citicore Renewable Energy Corporation is honored to be Mobilist’s first (IPO) investment in the Philippines. This groundbreaking investment in Crec IPO, Mobilist’s first IPO investment in the Philippines, is a signal of the UK’s strong support and confidence in the Philippines’ energy transformation plan, and Crec is at the forefront of this renewable energy revolution through the development and operation of various renewable platforms.”

“Mobilist is proud to build on our partnership with PSE through an IPO that we believe will generate significant domestic market insights to pave the way for other companies dedicated to enabling a safe, clean and growing energy supply for the people of the Philippines. The listing of Crec demonstrates that public markets can finance sustainable development at scale and potentially play an important role in financing the energy transition in the Philippines and other emerging markets,” added Ross Ferguson, Mobilist Program Manager at FCDO.

Mobilist is an intervention within the wider British Investment Partnership (BIP), an initiative under which the UK will provide packages of finance and technical assistance to support infrastructure development and green transition in the Philippines and across the Southeast Asian region. BIP has supported investment of £32 million in hydro and solar projects in the Philippines and has seen private investment in biomass of $350 million.