RAM Reaffirms AA1(s)/Stable Rating of Sarawak Power Generation’s MYR 215 Million Serial Sukuk Musharakah

RAM Rating Services (RAM) has reaffirmed the AA1(s)/Stable rating of Sarawak Power Generation’s (SPG) MYR 215 million Serial Sukuk Musharakah (2006/2021) (the Sukuk).

The enhanced rating reflects support from the Sarawak Energy Berhad Group (SEB), which owns SPG via wholly-owned SEB Power. Malaysian-based SPG holds the licence to build, operate and own a 317 MW gas-turbine facility (the Plant) in Bintulu, Sarawak.

According to RAM, SEB has provided assistance to SPG through the past decade, which is further backed by a Letter of Support from SPG’s sole off-taker, Syarikat SESCO Berhad (SESCO), which is a wholly-owned subsidiary of SEB. SESCO thus ensures that SPG will be able to meet all its financial obligations in respect of the Sukuk throughout its ten...