RE Royalties invests US$1.5m for share of Philippine rooftop-solar revenue
Nine operating mall-rooftop projects totalling 14.2MW will provide quarterly revenue-linked payments over their operating lives.
Renewable-energy financier RE Royalties has announced a US$1.5 million investment for a share of revenue from nine operating rooftop-solar projects on Philippine shopping malls. The deal exchanges upfront capital for quarterly payments tied to the 14.2-megawatt portfolio’s gross revenue.
The company disclosed the transaction on 19 October. Its royalty will run for the projects’ operating lives. Because payments are based on gross revenue, they represent a share of sales rather than profit left after expenses. The announcement does not disclose the royalty percentage, so it does not establish how much of the portfolio’s future revenue the investment buys.
The solar projects have long-term agreements to sell electricity to commercial mall operators, according to RE Royalties. The company says the portfolio also has an operating history, established project financing and third-party technical diligence.
The transaction establishes a relationship with a developer identified in the release as Singapore Solar. RE Royalties describes it as developing solar, wind and battery-storage projects across Southeast Asia, with a current focus on the Philippines.
The financing structure allows capital to be raised against income from operating solar assets. In return, the royalty buyer receives a continuing claim on revenue over their operating lives.
