MALAYSIA: MARC has withdrawn its ‘AAIS’ preliminary rating on Sparks Energy 1’s RM220 million (US$49.67 million) proposed ASEAN green SRI Sukuk, a statement confirmed. Sparks Energy 1 is the funding vehicle for two 30 MWac solar projects in Kuala Muda, Kedah and Machang, Kelantan.
Construction of the solar power plants is currently being funded by bank loans which are expected to be repaid from proceeds of the proposed Sukuk. The proposed Sukuk program would be set up upon achieving the commercial operation date for both plants.
The rating withdrawal reflects concern that the legal disputes between project sponsors over the sponsorship structure of the two solar power project companies would be protracted and may affect the completion of the Machang plant as well as impact the operational phase of the plants.