KUALA LUMPUR: Sarawak Energy Bhd's move to buy Sarawak Hidro Sdn Bhd – owner of the Bakun hydroelectric plant – has prompted RAM Ratings to examine the rating impact on the latter's Sukuk Murabahah of up to RM5.54bil.
The ratings agency said on Tuesday the Sukuk (2016/2031) had been rated AAA/Stable.
“The rating considers the Federal Government’s liquidity support commitment to top up any shortfall in the company’s targeted finance service coverage ratio, which is articulated in an irrevocable and unconditional letter of undertaking from the former, effective throughout the tenure of the Sukuk,” it said.
However, as Sarawak Energy plans to buy the entire equity stake in the plant from the Minister of Finance (Incorporated) (MoF), the consent of the sukuk holders would have to be obtained. This is because the transaction covenants require a minimum MoF shareholding of 51% throughout the tenure of the issue.
“As plans with regard to the Sukuk can only be finalised upon completion of the proposed acquisition, RAM will reassess the rating when more details become available,” it said.
Sarawak Hidro is an independent power producer that owns and operates the 2,400-MW Bakun plant, under a power purchase agreement which runs up to March 31, 2043.
Limited time offer:
Just RM5 per month.
