KUALA LUMPUR: Cypark Resources Bhd has deferred tranche 1 perpetual sukuk periodic distribution to prioritise the delivery of the large scale solar 2 (LSS2) project at Danau Tok Uban, Kelantan.
In a filing with Bursa Malaysia, Cypark said it dedicated all resources to ensuring commercial operatins date (COD) for the remaining 60 megawatt (MW) floating solar power plant of the project.
It stated that the move is following the COD of its Merchang, Terengganu 100MW hybrid solar power plant achieved on June 9, 2024.
"To prioritise the delivery of the DTU project and optimize Cypark's cash flow, the company has made the strategic decision to defer the tranche 1 perpetual sukuk periodic distribution due on Sept 4."Despite the deferment, the tranche 1 perpetual sukuk remains secured by 95 per cent cash sweeps from the revenue generated by four identified solar power plants," it said.
According to Cypark, the total bank balances in the designated accounts is amounting to RM101.96 million as of Aug 31, 2024.
Cypark said that it has sufficient cashflow to achieve COD of its projects following the support by its major shareholder via the tranche 2 and 3 perpetual sukuk totaling RM265 million as well as available banking facilities from its principal bankers.
It noted that there were three tranches of unrated perpetual sukuk aggregating RM500 million issued from year 2020 to 2023 under the Unrated Perpetual Sukuk Musharakah Programme and currently still outstanding.
"In aligning funding facilities against long-term concession assets, the company is undertaking a debt refinancing exercise with an intent to lower its effective borrowing costs. "
"With the LSS2 DTU project expected to be completed in the fourth quarter of this year, the exercise is timely as the company looks forward to leveraging its 400MW renewable energy portfolio to secure new growth projects which require deep and innovative expertise," it said.
Cypark developed Malaysia's largest hybrid and floating solar plants and its assets also include the only waste-to-energy plant in Malaysia.
RHB Investment Bank is the principal adviser/lead arranger for all three tranches of Cypark's unrated Perpetual Sukuk Musharakah Programme of up to RM500 million issued in 2020 and 2023.
At 3.17 pm, Cypark's share price declined 0.8 per cent or 0.5 sen to 66.5 sen, valuing the company at RM547.2 million.