Solarpack issues green Islamic bond to re-finance Malaysia solar farm

• Solarpack Suria Sungai Petani Sdn Bhd. (3SP), a unit of Spanish designer Solarpack, has actually raised MYR 285 million (USD 64.3 m/EUR 58.6 m) via the issuance of green Islamic bonds in Malaysia to refinance a building loan for its 116-MWp solar plant project in the country.

3SP issued the notes referred to as ASEAN Green SRI Sukuk Wakalah, which consisted of 38 semi-annual tranches with tones varying from one year to 19.5 years customized to match with the cash flow generation from the project, Solarpack said on Tuesday. The company's Malaysian unit made use of the profits to re-finance a swing loan it took to money the building and construction of the solar farm.

The issuance is in line with the ASEAN Green Bond Standards, the Securities Commission Malaysia's Sustainable and also Responsible Investment Sukuk structure and also the International Capital Market Association's Green Bond Principles. RAM Rating Services Berhad rated the bond AA2/Stable, the Spanish solar energy manufacturer said.

3SP, as Solarpack's project firm, was awarded the solar project under Malaysia's Large-Scale Solar 3 (LSS 3) Plan in 2019. The award entitled the company to a 21-year power purchase agreement (PPA) with Malaysian energy Tenaga Nasional Berhad (KLSE: TENAGA).

The solar farm accomplished commercial procedure on March 8, 2022, Solarpack claimed.