UiTM Solar Power Dua (USPD), a subsidiary of UiTM Energy & Facilities, has issued a 14-tranche Islamic medium-term note green Sukuk facility on the 3rd March 2021 worth RM100 million (US$22.07 million) under a one-time issue Murabahah green SRI Sukuk facility. The Sukuk issuance was arranged by Affin Hwang Investment Bank and has maturities ranging from one year to 14 years with the 14-year facility maturing on the 5th March 2035. The proceeds from the issuance will fund a solar power project which is expected to produce 812,487 MWh of electricity and create over 400 job opportunities throughout its 21-year life span.
UiTM Energy & Facilities is a private limited company in the renewable energy and energy efficiency business. It is a wholly-owned subsidiary of UiTM Holdings which, in turn, is a wholly-owned subsidiary of Malaysian public university Universiti Teknologi MARA (UiTM). USPD owns a 25 MWac large-scale solar photovoltaic power plant in Pasir Gudang, Johor. The proceeds from the Sukuk will be channeled toward the financing, design, engineering, procurement, construction, installation, testing, commissioning, ownership, operation and maintenance of the facility.
USPD signed a 21-year power purchase agreement with Tenaga Nasional to sell the energy generated from the plan at a fixed tariff to mitigate demand risk. The plant was targeted to be commercially operational on the 1st January 2020; however, due to the constraints as a result of the movement control orders, the plant became operational on the 2nd December 2020.
The Sukuk received an ‘AA-IS’ rating affirmation with a stable outlook on the 19th September 2022 from MARC Ratings for the RM97 million (US$21.18 million) outstanding amount under the facility. The rating agency expects USPD to be able to repay the second tranche of its Sukuk. “Its designated account balance of RM17.7 million (US$3.91 million) as at end-August 2022 is more than sufficient to meet the Sukuk repayment of RM5 million (US$1.1 million) in March 2023,” the rating agency said in a statement.
UiTM Energy & Facilities had also issued a RM240 million (US$52.98 million) green SRI Sukuk facility on the 27th April 2020 under another subsidiary, UiTM Solar Power.
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UiTM Solar Power Dua Sukuk RM100 million (US$22.07 million)  3rd March 2022
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| Summary of terms and conditions | |
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Issuer |
UiTM Solar Power Dua |
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Obligor |
UiTM Holdings |
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Size of issue |
RM100 million (US$22.07 million) |
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Mode of issue |
Sukuk |
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Maturity |
3rd March 2035 |
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Purpose |
To fund a solar power project |
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Issuance size |
100% |
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Tenor |
Tranche 1: one year Tranche 2: two years Tranche 3: three years Tranche 4: four years Tranche 5: five years Tranche 6: six years Tranche 7: seven years Tranche 8: eight years Tranche 9: nine years Tranche 10: 10 years Tranche 11: 11 years Tranche 12: 12 years Tranche 13: 13 years Tranche 14: 14 years |
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Profit rate |
Tranche 1: 3.3%
Tranche 2: 3.35% Tranche 3: 3.7% Tranche 4: 3.85% Tranche 5: 3.95% Tranche 6: 4.05% Tranche 7: 4.25% Tranche 8: 4.35% Tranche 9: 4.45% Tranche 10: 4.6% Tranche 11: 4.7% Tranche 12: 4.8% Tranche 13: 4.9% Tranche 14: 5% |
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Currency |
Malaysian ringgit |
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Lead arranger(s) |
Affin Hwang Investment Bank |
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Principal advisor(s) |
Affin Hwang Investment Bank |
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Governing law |
Malaysian law |
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Legal advisor(s)/council |
Zaid Ibrahim & Co – acting for the principal advisor Zul Rafique & partners – acting for the issuer |
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Islamic structure |
Murabahah (via Tawarruq arrangement) |
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Underlying asset |
Shariah compliant commodities |
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Shariah advisor(s) |
Masryef Management House |
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Rating |
‘AA-IS’ by MARC Ratings |