G Capital seals RM688mil power deal with TNB

KUALA LUMPUR: G Capital Bhd has signed RM688 million 21 years renewable energy power purchase agreement (REPPA) with Tenaga Nasional Bhd (TNB) for a total of 26  megawatts (MW) high-head small hydropower plants in Pahang.

G Capital said its subsidiary Northern Star Hydropower Sdn Bhd (NS Hydropower) has secured four REPPA with TNB. 

The combined capacity of four high-head small hydropower plants in Pahang, Malaysia amounts to 26 MW. 

"Of this, 12.5 MW is in Hulu Dong while the remaining 13.5 MW is in Batu Talam, Pahang," it said.

NS Hydropower has been granted as feed-in approval holder (FiAH) by the Sustainable Energy Development Authority (SEDA) for the plants. 

Each of the REPPA spans a period of 21 years from the commercial operation date (COD), with operations scheduled to commence on Dec 6, 2027. 

Under the REPPA, TNB will buy electricity from NS Hydropower at a Feed-in-Tariff (FiT) rate of 23 sen per kilowatt-hour (kWh).

Meanwhile, G Capital executive director Datuk Yap Yee Ping said it is procuring approvals from Bursa Malaysia and the Securities Commission in respect of a renounceable rights issue of redeemable convertible unsecured loan stocks (RCULS) announced on April 5.

"This involves the issuance of up to RM112.88 million of 1.41 billion five-year, 8.0 per cent RCULS at a nominal value of eight sen each. 

"The proceeds raised will be utilised to part-financing developments of small hydropower projects in possession, particularly 2.00 MW Sg. Geroh, 10.00 MW Sg. Salu – A and 8.00 MW Sg," she added.