CSEC Philippines Solar PV Portfolio, phase 1

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The project financing comprises a $100 million Mezzanine Construction Green Loan Facility, granted to Citicore Solar Energy Corporation (CSEC), the solar development vehicle of Citicore Renewable Energy Corporation, by Pentagreen Capital, a sustainable infrastructure debt financing partnership established by shareholders HSBC and Temasek.The proceeds are meant to be invested in the acceleration of the development of new solar power projects. An initial tranche of $30 million has been planned for a portfolio of six solar power (PV) projects with a gross capacity of 490 MW across the island of Luzon in the Philippines. These projects are expected to add around 691 gigawatt hours (GWh) of renewable electricity supply into the Luzon grid annually and result in avoided Greenhouse Gas (GHG) emissions of 430,000 tonnes of CO2 annually. Pentagreen’s $30 million commitment comes with a greenshoe option to increase the committed amount to $100 million to fund additional greenfield solar projects and the expansion of the portfolio of CSEC to over 1 GW. Developed by CSEC, which has plans to roll out 1GW of solar capacity per year over the next five years, the projects will sell green electricity to a combination of long-term and spot market customers, supporting the Philippines’ Department of Energy’s goal of generating 35% of the country’s energy needs from renewable sources by 2030 and 50% by 2040. The Mezzanine Construction Green Loan Facility has been structured as a green loan under Citicore’s Green Financing Framework, which was developed according to ICMA Green Bond Principles 2021, ASEAN Green Bond Standards and LMA Green Loan Principles, and which has received a Second Party Opinion from Sustainalytics. https://www.crec.com.ph/press-room/citicore-renewables-secures-us-100-million-financing-structured-by-pentagreen-capital