PETALING JAYA: The 30% windfall tax on independent power producers (IPPs), effective July 1, will result in lower cash reserves following the obligations of servicing senior debt and meeting the requirements of reserve accounts.
RAM Rating Services Bhd managing director and chief executive officer Wong Fook Wah said in a statement yesterday that the tax would have an impact on the junior bonds and those issued by the IPPs' shareholders, which were dependent on equity distributions from their respective project companies.
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