Citicore secures P6.7-B Indonesian RE infusion

Indonesian state-owned enterprise subsidiary PT Pertamina Power Indonesia (Pertamina New & Renewable Energy or Pertamina NRE) has entered the Philippine renewable energy market through a strategic partnership with Citicore Renewable Energy Corp. (CREC).

In a stock exchange disclosure on Friday, CREC announced the completion of a share subscription agreement with Pertamina NRE, allowing the Indonesian renewable energy firm to acquire a 20 percent stake in the company.

Pertamina NRE subscribed to 2.23 billion common shares of CREC at P3 per share, valuing the transaction at approximately P6.7 billion, or $115 million.

Bloomberg ranking

The deal marks Pertamina NRE’s entry into the Philippine market, which BloombergNEF recently ranked as the second most attractive emerging market for renewable energy investments.

Pertamina NRE will benefit from CREC’s expertise in project development and engineering, procurement, and construction (EPC).

In return, CREC will gain opportunities to collaborate on renewable energy projects in Indonesia, potentially expanding its reach in the region.

Limitless opportunities

“The partnership with Pertamina NRE presents limitless opportunities for Indonesia and the Philippines to collaborate on innovative technologies and practices in renewable energy,” CREC president and CEO Oliver Tan said.

“It gives a wider stage to CREC’s unique end-to-end capabilities by opening doors in Indonesia even as we drive our developments in the Philippines at full speed,” he added.

Proceeds from the agreement will support CREC’s ongoing development of renewable energy projects nationwide, aligning with its goal of adding approximately 1 gigawatt (GW) of green energy capacity annually as part of its “5GW in 5 years” roadmap.

Southeast Asia is projected to be a major driver of global renewable energy demand, and the partnership between CREC and Pertamina NRE is expected to accelerate national and regional renewable energy goals in both the Philippines and Indonesia.

AlphaPrimus acted as CREC’s financial adviser for the transaction.