Indonesia’s Pertamina New & Renewable Energy Establishes Partnership with Citicore Renewables

Indonesian State-Owned Enterprise Subsidiary PT Pertamina Power Indonesia (Pertamina New & Renewable Energy or simply Pertamina NRE), forays into the Philippines through a strategic partnership with Philippine pure-play renewable energy company Citicore Renewable Energy Corporation (CREC) through a landmark share subscription agreement.

Pertamina NRE will subscribe to a 20% interest in CREC, equivalent to 2,232,143,036 CREC common shares, at P3.00 per share, raising an estimated value of P6,696,429,108.00 or approximately US$115 million.

The partnership with CREC marks Pertamina NRE’s first investment in the Philippines and their entry to the country’s booming renewable energy investment climate, now ranked second most attractive emerging market for renewable energy investment by BloombergNEF.

Pertamina NRE also gains access to CREC’s unique expertise in project development, and engineering, procurement and construction, or EPC. CREC, meanwhile, gains the opportunity to partner with Pertamina NRE to develop renewable energy projects in Indonesia, allowing for the company’s potential expansion 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 CEO.

Proceeds from the agreement 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 5 years roadmap.

With Southeast Asia seen as a driver in the demand growth for renewable energy worldwide, the strategic partnership between CREC and Pertamina NRE will benefit both the Philippines and Indonesia in accelerating national as well as regional renewable energy goals.

AlphaPrimus served as the financial adviser to CREC for this transaction.

PT Pertamina Power Indonesia (Pertamina NRE) is a subsidiary company fully owned by Pertamina, Indonesia's state-owned energy corporation, and is specifically responsible for managing all power generation and new & renewable energy development, focusing on gas-based power generation, geothermal energy, and other renewable energy sources like solar and wind power and also green business like nature-based solutions and carbon business.

Citicore Renewable Energy Corporation (CREC) is a leading pure-play renewable energy company committed to the development and operation of solar, hydro and wind projects in the Philippines. CREC, directly and through its subsidiaries and joint venture, manages a diversified portfolio of renewable energy generation projects, engages in power project development operations, and participates in retail electricity supply. CREC is also the sponsor of the Philippine’s first renewable energy REIT, Citicore Energy REIT (CREIT)