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  • Writer's pictureBy The Financial District

Powering Progress: SMIC Joins CREC In Renewable Energy

Updated: Mar 30

In the race towards a greener, more sustainable future, the Philippines is taking a bold stride with the recent partnership between Citicore Renewable Energy Corporation (CREC) and SM Investments Corporation (SMIC).

SMIC and CREC's partnership marks a leap towards a sustainable energy future in the Philippines.

This dynamic collaboration marks a pivotal moment in the nation's journey towards embracing renewable energy as a cornerstone of its sustainable development agenda.

Blessed with abundant natural resources like sunlight and wind, the Philippines has long been poised to lead the charge in renewable energy adoption. Yet, despite these advantages, the country still heavily relies on fossil fuels to meet its energy demands.

Enter the groundbreaking partnership between CREC and SMIC—a game-changing alliance that promises to accelerate the adoption of renewable energy and significantly reduce the country's carbon footprint.

In a strategic move set to energize the Philippine green energy movement, Citicore Renewable Energy Corporation (CREC) has successfully raised PHP 5.0 billion through the sale of shares in Citicore REIT (CREIT) to SMIC.

This sale, constituting a 28.79% interest in CREIT, represents a strategic alignment between two powerhouse conglomerates in the Philippines' business landscape.

With this monumental transaction, SMIC not only reaffirms its commitment to sustainability but also provides CREC with the financial muscle to propel its renewable energy projects forward.

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Boasting approximately 7.1 million square meters of gross leasable area, CREIT stands as the largest renewable energy real estate investment trust in the country—a testament to its potential impact on the green energy sector.

The partnership between SMIC and CREC goes beyond mere financial investment. It brings together their collective expertise and resources, opening doors to unprecedented synergies in renewable energy development.

Oliver Tan, President, and CEO of CREC, emphasized the strategic significance of this collaboration, stating, "We believe that the SM group’s entry and investment into CREIT and the partnership with CREC unlock potential synergies given the energy requirements of the SM group."

Echoing this sentiment, Frederic DyBuncio, President of SMIC, affirmed, "As part of our group-wide sustainability agenda to prioritize environmental responsibility and support a low-carbon economy, we are investing in CREIT to increase SM’s footprint in the renewable energy sector."

Post-transaction, CREC will retain its position as the single largest stakeholder in CREIT, holding a 32.88% effective ownership. The proceeds from the sale are earmarked to bolster CREC’s portfolio, particularly its solar power projects across eight site locations nationwide.

This strategic move aligns with CREC’s ambitious goal of contributing approximately 1.0GW of solar energy capacity per year as part of its 5-year pipeline rollout roadmap.

For SMIC, this investment represents a crucial step in its broader sustainability agenda, positioning the conglomerate to play a more proactive role in the renewable energy sector.

The partnership between SMIC and CREC sets a powerful precedent for other companies to follow suit and invest in renewable energy projects in the Philippines. By leveraging their combined strengths, they not only drive innovation but also bolster the nation's energy security and environmental sustainability.

As the Philippines charts its course towards a greener future, partnerships like the one between SMIC and CREC stand as beacons of hope.

Through their commitment to harnessing renewable energy sources, fostering innovation, and promoting sustainability, they pave the way for a brighter, more sustainable tomorrow.


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