KUALA LUMPUR: Cypark Resources Bhd has expressed confidence in the solar projects in Kelantan and Terengganu and assured the company has ample funds to fulfil these ventures.
The company has opted to postpone the coupon payment scheduled for March 4 on its perpetual sukuk.
In a statement, Cypark said it is dedicated to delivering 270 megawatts of solar projects in Kelantan and Terengganu.
“The decision to defer the March 4, 2024 coupon payment on the perpetual sukuk is a strategic move aimed at prioritising funds for the completion of the projects by the second quarter of 2024, as permitted by the terms of the perpetual sukuk,” Cypark statement said.
The company clarified that this deferment aligns with Cypark’s debt optimisation strategy, strategically matching facilities with long-term concession assets.
Despite the deferment, the sukuk remains secure, with Cypark benefiting from 95 per cent cash sweeps from the generated revenue, which currently amounts to RM86.5 million.
Highlighting its financial strength, Cypark asserted that it possesses sufficient cash flow to attain its ongoing projects’ commercial operation date (COD).
This assurance is backed by the major shareholder’s support through an RM265 million sukuk in the fourth quarter (Q4) of 2023, along with available banking facilities from principal bankers.
RHB Investment Bank Bhd is the principal adviser and lead arranger for all three tranches of the unrated perpetual sukuk Musharakah program, totaling up to RM500 million, issued in 2020 and 2023.
