KUALA LUMPUR (Nov 14): Mudajaya Group Bhd has proposed to issue up to RM245 million of Islamic bonds to part finance the development of a solar photovoltaic energy generating facility of 49MWac in Sungai Siput, Perak.

In a filing with Bursa Malaysia today, Mudajaya said the Green SRI Sukuk Wakalah will be issued on a one-off basis, where it may comprise one or more series having the same issue date but different maturity dates.

The tenure of each series of the proposed sukuk will be a period of up to 18 years from the date of its issuance.

Mudajaya said its indirect wholly-owned power generation subsidiary Sinar Kamiri Sdn Bhd (SKSB) had on Nov 7 made the lodgement with the Securities Commission Malaysia for the proposed sukuk. SKSB is a wholly owned subsidiary of Mudajaya RE Sdn Bhd, which is an indirect wholly owned unit of Mudajaya through its wholly owned subsidiary, Mudajaya Energy Sdn Bhd.

In March, SKSB had inked a power purchase agreement (PPA) with Tenaga Nasional Bhd to build the solar photovoltaic energy-generating facility, which is expected to commence operations on Aug 31, 2018. The PPA’s tenure of 21 years will be effective from the commencement of the facility’s commercial operation.

In September, Mudajaya announced that it had completed a private placement of 9.84% of its issued shares at RM1.15 per placement share, raising RM60.95 million. The proceeds will be used to fund the construction of the new power concession asset.

In a separate statement today, Malaysian Rating Corp Bhd said it has assigned a preliminary rating of AA-IS to SKSB’s proposed sukuk, with a stable outlook.

The estimated total development cost of the solar project is RM306.25 million, it added.

As at end of morning trade today, shares of Mudajaya edged up one sen or 0.93% to RM1.08, for a market capitalisation of RM653.85 million.