THE GREEN SOURCE Q1 2023

Citicore breaks ground largest solar plant in Batangas P7

EDITOR-IN-CHIEF Joan Cosico

ASSOCIATE EDITOR Adrienne Kristi Mendoza

ART DIRECTOR Lincoln Gasmen

WRITER Karlo Paolo Pates CONTRIBUTOR Ronald Mallari

Starting this year, we are launching a once-a-month special feature which will be dubbed as “Citi-Says,” an engagement activity that will highlight our employees’ great and valuable experiences with Citicore Renewable Energy Corporation (CREC).

To kick-off our Citi-Says, CREC’s Business Development Sr. Manager Hanzel Cubangbang is our featured employee for the month of January.

When asked about his reason for joining CREC, Cubangbang said he shares the same passion with the company in creating a more sustainable future for Filipino communities.

“Citicore has been leading the clean energy transition by being the first company with 100% Renewable Energy portfolio in the Philippines. This has inspired me to take action and by developing solar farms, offshore and onshore wind farms, energy storage, power plants, among others, we can build a better place for the generations to come,” he added.

CREC is a pure renewable energy developer and operator of solar, run-of-river hydro, and off-shore wind energy platforms, and has over 5GW of project pipelines of varying stages of development.

CREIT receives Permit to Sell for its ASEAN Green Bonds from the SEC

On January 30, Citicore Energy REIT Corp. (CREIT or the Company), the country’s first renewable energy (RE) REIT and largest RE landlord, received its Permit to Sell for its maiden ASEAN Green Bond Offering from the Securities and Exchange Commission.

The fixed rate bonds, scheduled to be issued on and listed at the Philippine Dealing and Exchange on February 10, 2023, will bear a coupon rate of 7.0543% and be due in February 2028. Earlier, the Issuer and the Issue received a rating of PRS Aa+ with Stable Outlook from the Philippine Rating Services Corporation (PhilRatings), signifying its strong capacity to meet its financial obligation.

The Offer Period will run from January 30 to February 3, 2023, with SB Capital and Investment Corporation and PNB Capital and Investment Corporation acting as the transaction’s joint local underwriters, issue managers, bookrunners, and selling agents.

“After opening the doors to a new REIT asset class in 2022 focused on RE, we want to show our existing and potential investors, and all stakeholders that we are committed

to continuously provide them with green and sustainable investment options. We are hopeful that the offer’s objective of funding green projects will translate to a favorable reception from the market,” said CREIT President and CEO Oliver Tan.

The proceeds of the offering are earmarked for the development of a solar rooftop system project and acquisition of land parcels with an estimated area of 5,000,000 square meters. The land parcels, located in Batangas, will be leased out to solar power generators and operators affiliated with Citicore Renewable Energy Corp. (CREC) – CREIT’s sponsor. These units have secured Solar Energy Service Contracts from the Department of Energy to construct three utility-scale solar plants, with a total projected generation capacity of 269MWdc and form part of CREC’s expansion pipeline.

“We constantly explore and prioritize investment alternatives that would allow us to accelerate CREIT’s growth trajectory and green asset portfolio, to enable us to reward our shareholders with greater value,” added Oliver Tan.

CREIT wins Best IPO Award on first listing anniversary

CREIT already boasts a unique green asset portfolio, with total landholdings of almost 2,000,000 square meters and backed by 100% occupancy all year-round, has allowed the Company to declare above-prescribed and steady dividends during its first listing year.

“This is the first renewable energy-focused real estate investment trust (REIT) in the Philippines with a unique green asset portfolio to list in the PSE. As such, it was structured differently from other local REITs as all deposited properties are leased out to renewable energy generators,” The Asset claimed in a statement.

The Asset’s annual Triple A recognition represents the industry’s most prestigious awards for banking, finance, treasury and the capital markets. As the financial multi-media group with the widest reach among Asian issuers and global institutional investors, The Asset has unparalleled insight, which forms the foundation for its much-anticipated annual awards.

JUMPSTARTING the year on a high note, Citicore Energy REIT Corp.’s (CREIT or the “Company”) initial public offering (IPO) was hailed as the Best IPO for the Philippines in The Asset Triple A Country Awards for Sustainable Finance 2022.

The award was formally presented to and received by CREIT Chairman Edgar B. Saavedra, President and CEO Oliver Y. Tan, and Director Manuel Louie B. Ferrer during the Awarding Ceremony held at the Four Seasons Hotel, Hong Kong last February 23, 2023.

Incidentally, exactly a year and one day before the Awarding, CREIT debuted in the Philippine Stock Exchange (PSE) via the IPO of the country’s first renewable energy REIT. As the Company celebrates its first listing anniversary this year, the Best IPO Award befittingly coincides with this milestone.

This recognition is a welcome addition to the long list of awards secured by CREIT in just one year.

CREIT already bagged Philippines’ Best Company, Regional Awardee of Best Managed Company under the Energy Category, Best Investor Relations, Best Managed Company, and Best Small-cap Company in the Philippines, and Oliver Tan, CREIT President, and CEO was also voted Best CEO of the year from FinanceAsia’s 22nd Best Companies in Asia Poll.

Then, CREIT was named as ‘Best REIT Portfolio Management’ at the International Finance Award 2022.

“The CREIT IPO was initiated with the goal of providing the best value proposition to the investing community and the creation of a new REIT asset class outside the traditional commercial property space. The issue, which focused on renewable energy, has paved the way for possible listing of other diversified REIT products, outside of the conventional office and commercial assets, that would hopefully further develop the local capital market putting emphasis on impact investing and ESG investments,” said Edgar B. Saavedra, Chairman of CREIT.

After twelve months, CREIT’s pioneering exercise invited a more revolutionary approach among other corporates, highlighted by other energy-related REIT issuances and other potential leasing assets in the REIT portfolio.

“As we celebrate the Company’s first listing anniversary, we are very proud to have created a ripple effect across the local REIT market, in terms of novelty and diversity. We also hope that the underlying themes behind CREIT – renewable energy, environmental sustainability, and social responsibility – will also gain more traction as we race towards a net zero carbon future and promote inclusive growth,” said Oliver Y. Tan, CREIT President and CEO.

The Company was given a Dark Green Rating by Cicero Shades of Green, the highest ranking bestowed to date among Southeast Asian companies. Shades of Green is now a part of S&P Global and the leading provider of independent, research-based evaluations of green bond and sustainability financing frameworks to determine their environmental robustness.

CREIT declares Php 0.051 cash dividend per share

Citicore Energy REIT Corp.’s (CREIT or the “Company”) declared on March 22 dividends amounting to Php 0.051/share. This consists of regular dividends coming from CREIT’s guaranteed base lease revenues from Q4 2022 and special dividends from variable lease revenues for the year, amounting to Php 0.044/share and Php 0.007/share, respectively.

The Company’s variable lease revenues amounted to Php 43.9 million for the year, representing CREIT’s 50% share in the excess revenues earned by its Lessees over base revenues. This was driven by the combined overperformance of actual versus base generation, which forms part of CREIT’s guaranteed base lease, as well as higher

electricity prices during the year.

For the entire year of 2022, CREIT has declared a total dividend of P0.183/share, representing a 7.44% yield based on March 21 closing price of Php 2.46.

“As the Company completes one year operating as a full-fledged REIT company, we stay on course with our objective to provide investors with sustainable and attractive dividend-paying REIT instrument, complemented with shared prosperity from its variable lease revenue. Additionally, the REIT Sponsor, Citicore Renewable Energy Corporation (CREC), is committed to pursue its 5GW pipeline project growth roadmap that will serve as potential assets for future CREIT infusion,” said President and Chief Executive Officer Oliver Y. Tan.

CREIT’s unique green asset portfolio, with total landholdings of almost 2,000,000 square meters and backed by 100% occupancy all year-round, has allowed the Company to declare above-prescribed and steady dividends during the year.

For its guaranteed base lease, CREIT has consistently paid out 107% of its distributable income in 2022, more than the mandatory 90% requirement under the REIT Law. As a result, CREIT became a constituent of the PSE Dividend Yield Index (PSE DivY Index) beginning February 6, 2023. The index was launched in 2022 to focus on investment securities that consistently give high-yielding dividends.

CREIT lists oversubscribed maiden ASEAN Green Bond Offering in PDEx

Citicore Energy REIT Corp. (CREIT or the Company) rang the bell last February 10 at the floor of the Philippine Dealing and Exchange Corp. (PDEx) in Makati City, during the listing ceremony of its maiden Php 4.5 Billion ASEAN Green Bond offering.

The listing ceremony was attended by Philippine Dealing and Exchange Corp. (PDEX) President and CEO Antonino Nakpil, Philippine Depository and Trust Corp. President and CEO Ma. Theresa Ravalo, Securities and Exchange Commission (SEC) Chairman Emilio Aquino, Department of Energy (DOE) Undersecretary Giovanni Bacordo, DOE’s Renewable Energy Management Bureau (REMB) Director Marissa Cerezo, PNB Capital and Investment Corp. Gerry Valenciano, SB Capital Investment Corp. Virgilio Chua, and Security Bank Chief Finance Officer (CFO) Eduardo Olbes.

The offer was oversubscribed, with the Php1.5-billion oversubscription option fully taken up during the offer period, which ran from January 30 to February 3, 2023. The ASEAN Green Bonds will bear a coupon rate of 7.0543% and mature on February 10, 2028.

Nakpil, in his message, said: “As I understand it, the green aspect of the bonds may also have a “social” component in the form of the benefits that the cash crops grown underneath the solar panels bring to the farmers and their families. That is quite possibly a micro template to quickly illustrate what “sustainable capitalism” would look like, kudos indeed. And it is refreshing to have the traditional market infrastructure support this glimpse of the future.”

“This listing marks our second capital raising activity in just twelve months, following our Initial Public Offering (IPO) almost a year ago. We are very grateful for the investment community’s continued favorable reception and the support of our joint lead underwriters, regulators, and participants. Without all of you, this exercise would have not been a successful offering, especially amid a looming global recession,” said Oliver Y. Tan, CREIT President and CEO.

SB Capital Investment Corporation and PNB Capital and Investment Corporation were the transaction’s joint local underwriters, issue managers, bookrunners, and selling agents, with Security Bank Corporation – Trust and Asset Management Group acting as the Trustee.

For his part, Securities and Exchange Commission (SEC) Chairman Emilio B. Aquino said in a recorded message aired during the ceremony, “CREIT once again sets another first this time, as the first REIT company to issue ASEAN Green Bonds. In addition to its REIT shares listed in the PSE, the issuance of such bonds has also contributed to the diversification of the investment products available to the capital market.”

Earlier, the Issuer and the Issue received a rating of PRS Aa+ with Stable Outlook from the Philippine Rating Services Corporation (PhilRatings), signifying its strong capacity to meet its financial obligation.

The proceeds of the offering will be used to acquire value-accretive properties to grow CREIT’s green asset portfolio, which are expected to increase CREIT’s landholdings to almost 4 times, from the current 2 million square meters to 7 million square meters – cementing its status as the country’s largest renewable energy (RE) landlord.

The land parcels will then be leased out to solar power generators and operators, who will construct three utility-scale solar plants with a total projected generation capacity of 269MWdc and form part of the expansion pipeline of CREIT’s Sponsor, Citicore Renewable Energy Corporation (CREC).

The regulators are also very supportive of these initiatives, citing CREC’s growth agenda vis-à-vis the country’s race for cleaner and renewable energy. “This will ultimately redound to the country’s National Renewable Energy Program, which aims for renewables to comprise 35% of power generation by 2030, and 50% by 2040,” SEC’s Aquino added.

FEATURE

Citicore breaks ground largest solar plant in Batangas

TUY, Batangas – Continuing playing an exceptional role in the renewable energy revolution in the Philippines, Citicore Renewable Energy Corporation (CREC) is building its largest among the current portfolio, a 680 megawatt (MW) peak solar power plant in Tuy, Batangas.

Once operational, the Batangas solar power plant will bring CREC’s total installed capacity from its solar facilities to 921-megawatt, further cementing its position as one of the largest and reliable contributors of pure renewable energy in the country’s energy mix.

CREC’s other renewable energy are derived from its 10 existing solar facilities strategically located across the Philippines, specifically in Armenia, Tarlac, Dalayap Tarlac, Bulacan, Bataan, South Cotabato, Toledo, Cebu, Silay, South Cotabato, and Arayat-Mexico, Pampanga.

Last March 21, CREC broke ground its first pure renewable energy facility in Tuy, and the biggest to be constructed in the province of Batangas. The project will be constructed in two phases over two years, and is expected to provide a much-needed boost to the Luzon Grid after its completion.

CREC Chairman Edgar B. Saavedra, CREC President and CEO Oliver Y. Tan, CREC director Manuel Louie Ferrer, DOE Usec. Giovanni Bacordo, Tuy Mayor Jecerelle Cerrado together with local government officials

Citicore Renewable Energy Corporation (CREC) President and Chief Executive Officer (CEO) Oliver Y. Tan.

Leading the groundbreaking ceremony are Energy Undersecretary for Special Concerns Vice Admiral Giovanni Carlo Bacordo, Assistant Secretary Mylene Capongcol, Energy Regulatory Commission (ERC) Chairperson Atty. Monalisa C. Dimalanta together with Megawide President and Chief Executive Officer (CEO) Edgar B. Saavedra, CREC President and CEO Oliver Y. Tan, and Tuy Mayor Jecerell C. Cerrado.

“CREC is committed to invest and develop more solar plants in the long run and help expand the country’s total renewable energy capacity. In fact, we have upsized our solar energy project pipeline alone by more than three times, from 1.5 GW to 5GW, in the next five years,” Tan said during the plant’s groundbreaking ceremony.

The Company is likewise capitalizing on technological hardware to further augment and stretch the benefits of its solar power inventory. “Aside from this development, we are also investing in the battery energy storage system (BESS) to extend the life of solar energy beyond daytime and offer more competitive alternatives to end-users,” added Tan, who is also the President and CEO of the Citicore Energy REIT Corp. (CREIT), the country’s first renewable energy REIT and largest landlord of solar farms.

Bacordo, who is representing Energy Secretary Raphael P.M. Lotilla, said, “With this development, CREC is helping the government achieve its long-term clean energy targets of 30% renewable energy share in 2035 and 50% in 2040 in the Philippines. No doubt, the development this solar farm can further boost the country’s economy through local employment and additional livelihood opportunities for the host communities,” he added.

Tan approximated at least 2,400 job opportunities will be made available during the project’s construction phase, majority of which will be sourced within the host community and surrounding areas.

The Batangas Solar Project, to be situated in a 5,000,000-square meter land parcel, will have an estimated cost of P21.6 billion and is expected to begin commercial operations by 2024. The MCC-CCI will be engaged for the plant’s pre-development, construction and commissioning. Cerrado, for his part, also thanked CREC for bringing these big-ticket projects to Tuy, Batangas. “We are all in this collective movement towards a sustainable future for all by harnessing cleaner and renewable energy sources,” Cerrado said.

Also witnessing the ceremony are representatives from the, National Grid Corporation of the Philippines (NGCP), Batangas 1 Electric Cooperative, Inc. (Batelec-1), Batelec-2 and officials of different barangays.

FROM TOP TO BOTTOM Energy Regulatory Commission (ERC) Chairperson Monalisa Dimalanta. CREC Chairman Edgar B. Saavedra. Tuy Chorale. Tuy Mayor Jecerelle Cerrado.

The second edition of Citi-Says highlights Juffer Edward Claveria, Jr., the Operations & Maintenance Engineer at Citicore Renewable Energy Corporation (CREC).

Claveria is a crucial member of the team responsible for ensuring the effective operation and maintenance of CREC’s solar assets. His role involves ensuring that all regulatory requirements are met and that the highest standards of safety are implemented.

Claveria’s dedication to his work is fueled by the culture of teamwork and trust that is highly valued at CREC. He recognizes that the success of the company is the result of the collaborative efforts of everyone involved, and he takes pride in being part of a team that shares a common goal. Claveria’s commitment to excellence and his appreciation of the value of teamwork make him a valuable asset to CREC and an inspiration to others in the renewable energy industry.

“First is competence, we are driven to perform to the best of our abilities. Second is innovation, we are always looking for better ways to improve on how we deliver clean and renewable energy to all. Lastly, we believe in teamwork,” Claveria adds.

CSWater joins the celebration of World Water Day 2023

CSWater General Manager Engr. Andrew D. Margarico, in his message, said the celebration of the World Water Day is a reminder and wakeup call for everyone to be proactive in protecting our natural water resources and environment.

Margarico also emphasized the need for a concrete plan and implementation of proper sanitation in order to protect our water resources.

“Water and proper sanitation is interconnected. We must implement a proper sanitation through septage management or sewerage system program to protect our water from contamination from the domestic waste. If we have this program, we can minimize the adverse effect in our water and we can save our water for our future generation,” he said.

Margarico urged the local government must improve its septage management and sewerage system program in different areas in Iloilo.

During the activity, Brgy. Damo-ong officials noted the volume of plastic garbage that were recovered from the creek. They expressed gratitude to CS Water and JWD the clean-up drive initiative.

At the sidelines, participants were also invited for a site visit in the Water Treatment Plant.

In line with the celebration of the World Water Day, CS Water in partnership with, Januiay Water District (JWD), and Januiay Municipal Environment and Natural Resources Office (MENRO) conducted a clean-up drive along Barangays Sta. Rita and Damo-ong in Iloilo recently.

The clean-up drive was conducted along a big creek and river which pass through up until the Suague River. CS Water’s Water Treatment Plant and Pumping Station No. 8 are located in Brgy. Damo-ong as well.

The World Water Day is a day to celebrate and recognize the importance of water in our lives and the lives of all living beings on our planet. Water is an important resource that sustains life and provides for our basic needs, from drinking and sanitation, to agriculture and industry.

Citicore’s AgroSolar yields 5,000 kilos of pechay

Citicore Renewable Energy Corporation

(CREC)’s pioneering AgroSolar Initiative was launched in 2021 with the end-goal of integrating the Agrivoltaic concept in its solar operations. The concept of ‘Agrivoltaic’ refers to the simultaneously development of a land area for solar power generation and farming which was received with a lot interests from CREC investors.

Since 2021, CREC has made a lot of positive breakthroughs from its AgroSolar initiative, including the harvest at least 3,735 kilograms of crops such as turmeric, arugula, and French beans, and in turn provided livelihood to at least 45 partner-farmers and local off-takers.

Moreover, CREC already secured patent from the Intellectual Property Office (IPOPHL) for the Citicore AgroSolar in April 2021.

And just recently, Citicore Renewable Energy Corporation (CREC) organized a ceremonial harvest for at least 5,000 kilograms of pechay or local napa cabbage this summer as part of its pioneering AgroSolar initiative. This serves as the first bountiful harvest for 2023, and largest yield of pechay crops, which were planted and grown alongside the solar panels at the Citicore Solar (CS) Tarlac 2 in Barangay Dalayap, Tarlac. It will be harvested in two cycles.

The ceremonial harvest was graced by Tarlac City Mayor Cristy Angeles, represented by her daughter Councilor Katrina Angeles, Tarlac City Vice Mayor Genaro Mendoza, officials from Barangay Dalayap.

Students from Dalayap Elementary School also performed cultural dance numbers as part of the program.

CREC President and Chief Executive Officer (CEO) Oliver Y. Tan, in his message, said Citicore’s AgroSolar remains to be an essential complement to the company’s operations, integrating solar power generation, and farming.

“For this year, we have identified pechay as the focused crop to support the farmers from Tarlac, which has long been recognized as one of the major producers of pechay,” Tan said.

“This summer, we will be harvesting an additional 4,000 to 5,000 kilograms of Pechay, which brings our total yield to about 8,500 kilograms of crops,” he added.

Tan said partner farmers will benefit from profitsharing, while local off-takers will be able purchase these crops at a price that allows for a profitable margin.

Meanwhile, CREC, through the Citicore Foundation, will use proceeds of the sales of these crops for its Corporate Social Responsibility (CSR) projects such as echo sheds, tree planting, and flood mitigation activities, and USBONG scholarship grants.

CIticore officials learn leadership values at LIFO workshop

BY: RONALD MALLARI

CITICORE Renewable energy Corporation (CREC) organized a Life Orientation and Vision-Mission-Values (VMV) workshop facilitated by ACG Human Capital Solutions, Inc. held in Tagaytay City last January 27 and 28.

The two-day workshop which centered on understanding and assessing the participant’s productivity level as leaders through Life Orientation Application on Dynamic Productivity was facilitated by Maria Romina “Gem” Brion Zabala, President and Chief Executive Officer (CEO) of ACG Human Capital Solutions, and a Certified Master Trainer of LIFO (Life Orientation) in the Philippines, and Dr. Mila Lagrosa, Chief Co-Creator and Educator of SIGLA (School In the Garden of the Living Archetypes), and Associate Professor of AIM (Asian Institute of Management).

It was attended by CREC President and CEO Oliver Y. Tan along with its CREC leaders.

In his message, Tan said this workshop enables management-level officials to learn practical skills for managing their respective team’s performances and make a significant impact to their jobs and to the company.

“We are committed to creating value in everything that we do. We believe that shaping and developing agile leaders is the foundation in building a culture of excellence,” Tan said.

The workshop’s objective of inculcating the concept of “Leadership Excellence” among the participants was achieved and is believed to go a long way of translating values to behaviors, and embodying the company values resulting to CREC’s new Vision, Mission, and Corporate Values.

Tan added that we want all leaders and aspiring leaders to experience leadership excellence with CREC.

FEATURE

C

The Human Resources and Administration (HRA) organized an employee engagement activity dubbed as “The HR Hour.”

Through this activity, Citi-Zens are treated to fun and mind-enriching games and activities with the end-goal of instilling updated company’s vision, mission, and values.

Ronald Mallari, Jr. Manager of HRA’s Learning and Organizational Development, said it is important for Citi-Zens to get a good grasp of the updated VMV as it provides direction for all that happens within and outside the organization.

“It will be a combination of interactive programs, and games released through infographics, art card, collaterals, and other forms of information,” said Mallari, the lead implementor of “The HR Hour.”

Some of the activities organized were Word Scrabble, Figgerits, crossword puzzle, Two Truths and a Lie, 4 pics, 1 Word, among others.

Joan Cosico, CREC’s Chief Investor Relations and Communications Officer, said the HR Hour activities were tough brain exercises.

Special winners received cash prizes, and special items while consolation winners were given Citicore merchandises. The HR Hour was held from Mondays to Fridays, 3:00PM - 4:00PM via MS Teams.

Vision

Powering a First World Philippines with Pure Renewable Energy

Values

Mission

Responsibly harness nature’s resources to generate sustainable energy and long-term value for our stakeholders.

Excellence We are motivated by our attitude to act with distinction.

Innovation We progressively transform our business and operations by creating an environment that leverages on technological advancement to achieve optimum results.

Teamwork We are a team of diverse talents driven towards a common goal to foster a positive working relationship.

Integrity We are committed to uphold fairness, respect and honesty in everything we do.

Malasakit We ensure the welfare and best interests of our employees, families, customers, partners, stakeholders, and community.

Stewardship We are faithful to our sustainability commitment towards nature’s resources. for Environment