MALAYSIA: Ranhill Solar Ventures has proposed a Sukuk Murabahah program of up to RM310 million (US$69.54 million) to be issued in three tranches over the next five years, a statement from RAM Ratings noted. Concurrently, the rating agency has assigned a ‘AA3/Stable’ preliminary rating to the proposed Sukuk.
Ultimately wholly owned by Ranhill Utilities, Ranhill Solar Ventures was set up to raise financing for two power projects and support general corporate purposes, including shareholder distributions. The two projects are Ranhill Solar I’s 50 MW greenfield solar photovoltaic plant in Bidor, Perak and Ranhill Powertron’s 190 MW combined-cycle gas turbine power plant at Kota Kinabalu Industrial Park, Sabah.
The first tranche worth RM145 million (US$32.53 million) is earmarked for the development cost of the Bidor solar plant in August 2022. A subsequent RM77 million (US$17.27 million) is expected to be issued in the following month to support Ranhill Powertron’s convertible unsecured loan stock redemptions and dividend payments. The final tranche is projected in 2027 and will finance Ranhill Powertron’s capital expenditure.