Solarvest Holdings Berhad, a leading clean energy expert, has submitted an application to the Securities Commission (SC) for the establishment of two Islamic financial programs. The first is an Islamic Medium-Term Notes (IMTNs) program known as the IMTN Programme, while the second is an Islamic Commercial Papers (ICPs) program known as the ICP Programme. These programs, known as the Sukuk Programmes, have a combined limit of up to RM1.0 billion.
As part of the IMTN Programme, Solarvest Holdings Berhad can also issue Sustainable and Responsible Investment IMTNs (referred to as “Sustainability IMTNs”). These Sustainability IMTNs will be issued in alignment with Solarvest’s Sustainability Sukuk Framework and the Sustainability Guidelines outlined in the Securities Commission’s Guidelines on Unlisted Capital Market Products.
RAM Rating Services Berhad, the credit rating agency, gave a stable outlook and preliminary credit ratings to Solarvest Holdings Berhad’s IMTNs Program and ICPs Program. The long-term IMTNs Programme received an A1 rating, while the short-term ICPs Programme received a P1 rating. Malaysian Rating Corporation Berhad (MARC) has also awarded Solarvest’s Sustainability Sukuk Framework with a “Gold” impact assessment.
The tenure of the IMTN Programme is 30 years, while the ICP Programme has a tenure of 7 years, from the date of the initial issuance. RHB Investment Bank Berhad has taken on multiple roles, serving as the Principal Adviser, Lead Arranger, Lead Manager, and Facility Agent. RHB Islamic Bank Berhad is the appointed Shariah Adviser. Additionally, RHB Investment Bank Berhad is the Framework Adviser for the Sustainability Sukuk Framework.
Executive Director and Group Chief Executive Officer of Solarvest, Mr. Davis Chong Chun Shiong (张俊雄) said, “Over the past two years, we have undergone a transformative journey to strategically position ourselves to meet the stringent criteria in securing this green financing opportunity. This achievement validates our strong credit worthiness and reaffirms our commitment to sustainability. With this, we are confident in elevating the Group to greater heights as we strive to be a developer of clean energy assets within the region.”
“These Sukuk Programmes will provide us with a robust war chest to fulfil both our short and long term funding needs in accelerating our growth plans. This access to the debt capital will diversify our funding sources and allow us to reach out to a wider pool of sophisticated investors, which significantly enhance our capacity to undertake larger-scale projects, both domestically and internationally, enabling us to seize opportunities swiftly as they arise.”
“The funds raised will be allocated towards capital expenditure, working capital, acquisition of projects, investments and assets that align with our long-term vision. Notably, the timing is opportune as we anticipate the announcement of quota awards under the 800-megawatts Corporate Green Power Programme,” Mr. Davis added.