Global renewables firm Scatec Solar has raised $237million through the world’s largest issued Islamic bond.
The money, raised through the one billion Malaysian Ringgit (MYR) Green SRI Sukuk, will finance three solar photo-voltaic plants in Malaysia.
Scatec entered the Malaysian large-scale solar energy market back in December by joining forces with a local ITRAMAS-led consortium, which had signed three 21-year Power Purchase Agreements (PPAs) with the country’s largest electricity utility, Tenaga Nasional Berhad (TNB).
The partnership covers three solar plants totaling 197 MW with a total investment of about $293 million.
Located in Merchang in the north-east, Jasin in the south and Gurun in the north-west of Peninsular Malaysia, the three power plants cover more than 180 acres each.
Scatec will be the turn-key engineering procurement and construction provider for the projects and provide operation and maintenance as well as asset management services to the power plants.
“We are very satisfied to reach this important milestone. Together with our partners, we have again demonstrated our wide-ranging expertise and we are now ready to build the largest solar energy portfolio in South East Asia”, says Raymond Carlsen, chief executive of Scatec.
Construction of the plants has already started and is expected to be completed within the next few months.
Headquartered in Kuala Lumpur, ITRAMAS Corporation Sdn Bhd, a Malaysian engineering company with 17 years experience in green technology, is the lead sponsor of the three solar projects and signed the PPAs on behalf of the local consortium that includes two other Malaysian companies, MalTechPro and Cam Lite.
“This milestone marks a new beginning for Malaysia’s renewable energy sector. The projects are envisaged to generate up to 3,000 local jobs and will generate electricity for up to 93,000 households per year”, said Lee Choo Boo, group managing director of ITRAMAS Corporation Sdn.
The solar projects are expected to generate 282,000 MWh of electricity per year and avoid about 210,000 tons of carbon emissions per year, taking Malaysia closer to achieving its promised emission cuts under the Paris Climate Agreement.
The MYR 1,000 million Green SRI Sukuk was given an AA-rating by the Malaysian Rating Corporation Berhad (MARC) and a ‘dark green’ rating from CICERO – The Center for International Climate and Environmental Research in Oslo.