Launch Partners

Monday, October 2, 2023

Launch Partners

Case study: Cypark Renewable Energy’s perpetual Sukuk

Green energy solutions provider Cypark Renewable Energy, a wholly-owned subsidiary of Cypark Resources, has on the 8th February 2023 issued an RM8 million (US$1.79 million) perpetual Sukuk facility under a Musharakah-based program to finance four solar photovoltaic (solar PV) power plant projects.

RHB Investment Bank was the lead arranger for the Sukuk issuance, which carries a fixed coupon rate of 6.85%. As the facility is structured under the Musharakah concept, it is an equity instrument with no contractual redemption obligations by the issuer.

The security providers of the RM500 million (US$111.65 million) government guaranteed Sukuk program have entered into a renewable power purchase agreement with Tenaga Nasional for the power generated by the solar PV projects with a combined energy-generating capacity of 24.12 MW peak.

The security providers include Cypark Suria (Pajam), Gaya Dunia, Ambank Fiesta and Rentak Raya. The largest project funded by the program is Project Pajam owned by Cypark Suria (Pajam) with a 13.1 MW peak energy-generating capacity.The project site is located on 68 acres of land in the state of Negeri Sembilan.

The state government granted the project undertaker the right to use the project site on an ‘as is where is basis’ for a period of 21 years, which will expire on the 16th April 2033 with a further extension of two years.

To date, Cypark Renewable Energy has issued perpetual Sukuk worth RM234 million (US$52.25 million) beginning from the 4th September 2022, including its largest tranche worth RM97 million (US$21.66 million).

“The balance of the proceeds of the issuance of perpetual Sukuk Musharakah will be utilized for the capital expenditure and the working capital on the ongoing engineering, procurement, construction and commissioning contracts for the renewable energy projects,” Cypark Resources noted.

In October 2019, Cypark Ref, also a wholly-owned subsidiary of Cypark Resources, issued a 19-series SRI Sukuk facility worth RM550 million (US$122.81 million). The SRI Sukuk facility was issued to finance three 30 MWac solar PV projects.

Cypark Renewable Energy

RM8 million (US$1.79 million)

8th February 2023
Summary of terms and conditions
Cypark Renewable Energy
Cypark Resources
Security Providers
Cypark Suria (Pajam), Gaya Dunia, Ambank Fiesta and Rentak Raya
Size of issue
RM8 million (US$1.79 million)
To finance four solar photovoltaic power plants
Profit rate
Malaysian ringgit
Maturity date
4th September 2120
Lead arranger(s)
RHB Investment Bank
Government guaranteed
Governing law
Malaysian law
Islamic structure
Shariah advisor(s)
RHB Islamic Bank

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