RAM: Sepangar’s MYR 575 Million Sukuk Murabahah Rating Reaffirmed at AA1/Stable

RAM Ratings (RAM) has reaffirmed the rating of Sepangar Bay Power (Sepangar)’s MYR 575 million Sukuk Murabahah at AA1/Stable. Sepangar is the owner and operator of a 100 MW combined cycle gas turbine power plant in Sabah. The Company has a 21-year Power Purchase Agreement (PPA) with Sabah Electricity (SESB) over August 2008 to August 2029.

RAM’s rating affirmation reflects Sepangar’s strong ability to service its debt, supported by its long-term agreement with SESB. The plant in Sabah has performed well since 2015, granting Sepangar with monthly and bonus capacity payments.

As a provider of essential services, the Company was permitted to continue operations during...