RAM Ratings Reaffirms AA3/Stable Rating of Tadau Energy’s MYR 250 Million SRI Sukuk

RAM Ratings (RAM) has reaffirmed Tadau Energy’s (Tadau) MYR 250 million SRI Sukuk Program (2017/2033) AA3 rating with a Stable Outlook.

According to the Islamic Markets Sukuk Monitor, the MYR 250 million Sukuk was issued on the 27th of July 2017 under 15 different tranches carrying profit rates between 4.80% and 6.20%, maturing on the 27th of July 2033. Proceeds of the Sukuk will be used to finance Tadau’s 50 MWac solar photovoltaic (PV) plants in Sabah, Malaysia.

RAM’s reaffirmation of the rating is based on the strong operational performance of Tadau’s PV plants in Sabah, consisting of Unit 1 (2 MWac) and Unit 2 (48 MWac), which supply electricity to Sabah...