KUALA LUMPUR: Solar power producer Quantum Solar Park Malaysia Sdn Bhd is issuing the country’s first green Sustainable and Responsible Investment sukuk of up to RM1 billion.
The sukuk is issued through Quantum Solar’s wholly-owned Quantum Solar Park (Semenanjung Sdn Bhd).
Quantum Solar is equally owned by ItraMAS Technology Sdn Bhd, MalTechPro Sdn Bhd and CamLite Sdn Bhd.
The RM1 billion proceeds will be used to build three 50 megawatt (50MW) alternating current solar photovoltaic power plants concurrently, one each in Gurun (Kedah), Merchang (Terengganu) and Jasin (Melaka).
Rating agency MARC has assigned a preliminary rating of “AA-IS” with a stable outlook for the proposed sukuk murabahah.
With a combined capacity of 150MW, QSP Semenanjung will be the largest solar power producer in the country.
The total project cost of about RM1.24 billion will be funded on an 80:20 sukuk-to-equity financing basis.
According to a statement issued by MARC, the equity of about RM250.3 million would be injected into QSP Semenanjung before any of the project companies pay 90 per cent of the amount payable under their respective engineering, procurement and construction (EPC) contracts or before any of the project company’s balance in the designated accounts falls below RM10 million.
The rating mainly reflected the adequate projected cash flow coverage on the back of the 21-year solar power purchase agreements with Tenaga Nasional Bhd, the rating agency added.
“It also considers the well-structured contract arrangements with respect to the EPC and operations and maintenance of the plants.”
The EPC contracts have been awarded to Scatec Solar Solutions Malaysia Sdn Bhd, which is wholly-owned by Norway’s Scatec Solar ASA.
QSP Semenanjung’s three solar plants are scheduled to achieve commercial operation date concurrently on December 31 this year.