MARC Issues Update on SPG’s MYR 4 Billion Sukuk

Malaysian Rating Corporation (MARC) has issued an update on Southern Power Generation's (SPG) MYR 4.0 billion Sukuk Wakalah due to the implications of the Movement Control Order (MCO) enforced by the Government of Malaysia.

According to MARC, the commissioning work of the power plant project in Pasir Gudang is only 77% complete with the scheduled commercial operation date (COD) being 1st of July 2020. However, the MCO, the duration of which is uncertain at the moment, has resulted in a nationwide stop work order for construction and commissioning activities. Hence, MARC expects the COD to be postponed with no clear visibility.

However, according to MARC’s assessment, SPG is in...