KUALA LUMPUR: Solarvest Holdings Bhd intends to raise up to RM1 billion from two sukuk issuances for capital expenditures, asset and project acquisitions, and other purposes.
It aims to launch an Islamic Medium-Term Notes (IMTN) programme and an Islamic Commercial Papers programme with a combined ceiling of up to RM1 billion, according to its filing with the Securities Commission (SC).
Under the IMTN Programme, Solarvest may also issue Sustainable and Responsible Investment IMTNs in accordance with Solarvest's Sustainability Sukuk Framework and the Sustainability Guidelines defined in the SC Guidelines on Unlisted Capital Market Products.
RAM Rating Services Bhd, has assigned a stable outlook and preliminary credit ratings of A1 (long-term) and P1 (short-term) to the IMTNs Programme and ICPs Programme, respectively.
Meanwhile, Malaysian Rating Corporation Bhd (MARC) has assigned a "Gold" impact assessment to Solarvest's Sustainability Sukuk Framework.
The IMTN Programme has a tenure of 30 years, while the ICP Programme has a tenure of seven years from the date of the first issue.
Solarvest executive director and group chief executive officer Davis Chong Chun Shiong said that over the past two years, the company has undergone a transformative journey to strategically position Solarvest to meet the stringent criteria for securing this green financing opportunity.
"This achievement validates our strong credit worthiness and reaffirms our commitment to sustainability.
"With this, we are confident in elevating the company to greater heights as we strive to be a developer of clean energy assets within the region," he said in a statement today.
According to Chong, these Sukuk programmes will provide Solarvest with a robust war chest to fulfil both its short- and long term funding needs and accelerate the company's growth plans.
He said this access to debt capital will diversify the company's funding sources and allow it to reach out to a wider pool of sophisticated investors, which significantly enhances its capacity to undertake larger-scale projects, both domestically and internationally, and seize opportunities swiftly as they arise.
"The funds raised will be allocated towards capital expenditure, working capital, the acquisition of projects, investments, and assets that align with our long-term vision.
"Notably, the timing is opportune as we anticipate the announcement of quota awards under the 800-megawatt Corporate Green Power Programme," he noted.
RHB Investment Bank Bhd is the principal adviser, lead arranger, lead manager, and facility agent for the Sukuk programmes, while RHB Islamic Bank Bhd acts as the Shariah Adviser.
RHB Investment is also the framework adviser for the Sustainability Sukuk Framework.