Cypark Resources Bhd’s unit, Cypark Ref Sdn Bhd, is proposing to set up an SRI Sukuk Murabahah Programme to finance its solar photovoltaic power plant projects. The sukuk will have a tenure of up to 22 years commencing from the date of the first issuance, it said.
The company said in its Bursa Malaysia announcement that the proceeds from this Islamic debt issuance would be to part-finance the costs and expenses associated with the design, engineering, procurement, construction and commissioning, ownership, operation and maintenance of 3x30MWAC solar photovoltaic power plant projects.
Proceeds will also be used to finance the profit payments of the sukuk during the construction period and to pre-fund the initial minimum required balance to be deposited into the finance service reserve account.
It will also be used to defray any expenses incurred in relation to the sukuk issuance.
Maybank Investment Bank is the principal adviser, lead arranger and lead manager for this sukuk.
In its recently reported second-quarter results to end April, Cypark reported that its net profit had risen to RM19.34mil from RM18.75mil in the same quarter a year ago, while revenue was almost flat at RM101.43mil from RM99.08mil a year ago.
The increase was mainly contributed by the projects secured in the environmental engineering division, the company said.
Commenting on its outlook, the company said that in the past two financial years of 2017 and 2018, Cypark’s first-half financial results represented 40% and 44% of the full-year results, respectively.
“Based on the similar trends seen in the past two years, we will endeavour to achieve better results for the current financial year,” it said.
Source The Star