RAM Reaffirms AA3/Stable Rating of Edra Energy’s MYR 5.085 Billion Sukuk Wakalah

RAM Ratings Services (RAM) has reaffirmed the AA3/Stable rating of Edra Energy’s Sukuk Wakalah of up to MYR 5.085 billion (2018/2038) (the Sukuk).

Edra Energy is a Malaysia-based power generation service provider, which owns, operates, develops, and maintains power plants. RAM’s reaffirmation is based on Edra Energy having adequate liquidity to endure a six-month construction delay faced by its 2,242 MW power plant in Alor Gajah, Melaka (the Plant). In addition, the reaffirmation takes into consideration a higher tax payment due to the reinstatement of the sales and service tax in Malaysia in September 2018.

According to RAM, the Plant is 96.98% complete as at September 2020, which is behind the targeted 99.42%. However, the Plant’s pre-funded conti...