KUALA LUMPUR (Dec 9): Edra Energy Sdn Bhd will hold an extraordinary general meeting (EGM) on Dec 17, 2021 to seek approval from holders of the electricity producer's RM5.28 billion Islamic bonds or sukuk for a proposed revision in the terms and conditions of the corporate exercise, according to the bond scheme's facilitator CIMB Investment Bank Bhd.

The EGM will be held virtually at 11am on Dec 17, 2021, CIMB said in a filing with Bank Negara Malaysia's Fully Automated System for Issuing/Tendering (FAST) website on Wednesday (Dec 8, 2021) evening.

"Please be informed that the issuer (Edra Energy) is seeking sukuk holders' approval for a revision of the terms and conditions as set out in the lodgement made to the Securities Commission Malaysia and the transaction documents.

"Please refer to Malaysian Trustees Bhd (the bonds' trustee) for further information, resolutions and appendices or attachments, if any," CIMB said.

However, no details were provided in the FAST filing in regard to the planned revision of the terms and conditions for Edra Energy's RM5.28 billion sukuk.

According to the website of Edra Energy's holding company Edra Power Holdings Sdn Bhd, the group is the operator of the 2,242MW combined-cycle gas turbine power plant in Melaka.

"We maintain a strong focus on our existing markets of Malaysia, Egypt, Bangladesh, UAE (United Arab Emirates) and Pakistan, as well as emerging markets in Southeast Asia, the Middle East and North Africa. Our geographic diversity and market leading positions in multiple countries are strategically advantageous to capture growth in fast-developing economies.

"We are looking forward to further expansion opportunities in the markets where we already have a strong foothold as well as in new areas. We will explore new mixes of fuels together with potential related infrastructure such as gasification or regasification plants," said Edra Power, which is a subsidiary of China General Nuclear Power Corp (CGN) following the acquisition of the Edra Group operating companies and its subsidiaries by CGN.

Following the acquisition by CGN, Edra Power became the new holding company for operating companies comprising Edra Solar Sdn Bhd, Edra Energy, Powertek Energy Sdn Bhd, Jimah Teknik Sdn Bhd, Jimah O&M Sdn Bhd and Tiara Tanah Sdn Bhd, according to Edra Power.

Edra Power was originally formed in 2014 from the consolidation of three major independent power producers in Malaysia, namely Powertek Energy Group, KLPP Group and Jimah Energy Group, according to Edra Power.

RAM Rating Services Bhd analysts Jack Kwan and Chong Van Nee wrote in a note dated July 23, 2021 that Edra Power had extended a letter of undertaking to irrevocably and unconditionally provide Edra Energy with requisite liquidity support.

"Backed by favourable project fundamentals, Edra Energy is anticipated to generate strong cash flow after the completion of the (Melaka) plant," Kwan and Chong said.