RAM Assigns Solar Management Seremban’s Proposed MYR 260 Million ASEAN Green SRI Sukuk ‘AA3’ Rating

RAM Ratings (RAM) has assigned the MYR 260 million ASEAN Green SRI Sukuk (2020/2038) proposed by Solar Management (Seremban) Sdn Bhd (SMS) a preliminary AA3 rating, with a Stable Outlook.

Under a 21-year Power Purchase Agreement (PPA) with Tenaga Nasional, SMS has been contracted to build, operate and maintain a 50 MWac solar power plant (the Plant) in Rembau, Negeri Sembilan, Malaysia, which commenced commercial operations on the 30th of January 2019.

The favourable terms of the PPA has underpinned SMS’s healthy project fundamentals, which is reflected in RAM’s preliminary rating. The PPA anchors SMS with a predictable cash flow, as Tenaga Nasional, which is AAA-rated...