Indonesian state-owned enterprise Pertamina Power Indonesia, known as Pertamina New & Renewable Energy or Pertamina NRE, is taking a 20% stake in Citicore Renewables Energy Croporation (CREC) as it expands into the Philippines.
The firm has acquired the equivalent to 2,232,143,036 CREC common shares, at P3 per share, for an estimated value of P6.7 billion ($115 million). The proceeds will contribute to the development of CREC’s pipeline of renewable energy projects nationwide in line with its goal of contributing approximately 1 gigawatt (GW) of green energy capacity per year as part of its 5GW in five years roadmap, according to a media release.
The partnership with CREC marks Pertamina NRE’s first investment in the Philippines and an entry into the country’s renewable energy market, which has been ranked the second most attractive emerging market for renewable energy investment, by researchers at BloombergNEF.
Pertamina NRE said that it will gain access to CREC’s expertise in project development, and engineering, procurement and construction. CREC has a range of solar, hydro and wind projects across the Philippines. In October 2024 CREC's wind division signed an agreement with Singapore-headquartered Levanta Renewables, backed by global investor Actis, to help develop its onshore portfolio of wind projects.
CREC said it will gain the opportunity to partner with Pertamina NRE to develop renewable energy projects in Indonesia, to help the company expand in the region.
“The partnership with Pertamina NRE presents limitless opportunities for Indonesia and the Philippines to collaborate on innovative technologies and practices in renewable energy. 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,” said Oliver Tan, CREC president and chief executive officer, in the media release.
AlphaPrimus served as the financial advisor to CREC for the transaction.
