Solarpack raises MYR285 million through issuance of a green bond facility in Malaysia

Solarpack has raised MYR285 million through its project company, Solarpack Suria Sungai Petani Sdn Bhd (3SP) by successfully issuing an ASEAN Green SRI Sukuk Wakalah in accordance with the ASEAN Green Bond Standards, the Securities Commission Malaysia’s Sustainable and Responsible Investment Sukuk framework and the International Capital Market Association’s Green Bond Principles.

Proceeds from the issuance have been utilised to refinance the existing bridge loan of 3SP used for the construction of the 116MWp solar plant being operated by Solarpack in Malaysia. These Islamic notes comprise 38 semi-annual tranches with tenors ranging from 1 year to 19.5 years sculpted to match closely with the cashflow generation from the project. The facility has received a credit rating of AA2/stable from RAM Rating Services Berhad while RAM Sustainability Sdn Bhd, which reviewed 3SP’s Green Sukuk Framework, has assigned a Tier-1 environmental benefit (EB) rating to the project. Maybank Investment Bank Berhad (MIBB) acted as the principal advisor and lead arranger while MIBB and CIMB Investment Bank Berhad (CIMB) acted as the joint lead managers on the issuance.