RAM Ratings assigns final AA3 rating to Solar Management (Seremban)’s ASEAN Green SRI Sukuk

Published on 19 Oct 2020.

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RAM Ratings has assigned a final AA3/Stable rating to Solar Management (Seremban) Sdn Bhd’s (SMS) RM260 mil ASEAN Green SRI Sukuk (2020/2038) (the Sukuk). In assigning the final rating, RAM has reviewed all the relevant transaction documents and assumptions applied. We find them to be in line with our expectations when the preliminary ratings had been assigned (published on 2 September 2020). Please refer to our final rating rationale on SMS for further details on the assigned rating.

Under a 21-year Power Purchase Agreement (PPA) with Tenaga Nasional Berhad (TNB), SMS has been contracted to design, construct, own, operate and maintain a solar photovoltaic (PV) plant with a capacity of 50 MWac (the Plant) in Rembau, Negeri Sembilan. The Plant had been completed via a fixed-price, lump-sum turnkey contract with Mattan Engineering Sdn Bhd. It is among the winning contenders in the first cycle of Malaysia’s large-scale solar competitive bidding programme. The Plant achieved its commercial operations date (COD) on 30 January 2019. SMS uses polycrystalline PV modules manufactured by Hanwha Q Cells Malaysia Sdn Bhd, and central inverters produced by Sungrow Power Supply Co Ltd. Both are reputable and financially stable companies.

The Sukuk, equivalent to 80% of the total project cost, is to refinance SMS’s existing loan facility and shareholders’ loans to fund the construction of the Plant. SMS is a wholly owned subsidiary of Solar Management (Chembong) Sdn Bhd, which in turn is equally held by two individuals, Tee Cheng Hua and Rokiyati Binti Jumali. Tee and his family are primarily involved in the oil palm plantation business. 


Analytical contact
Yip Chee Meng
(603) 3385 2516

Media contact
Padthma Subbiah
(603) 3385 2577


The credit rating is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security’s market price or its suitability for a particular investor, nor does it involve any audit by RAM Ratings. The credit rating also does not reflect the legality and enforceability of financial obligations.

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Rating Rationale

Ratings on Solar Management (Seremban) Sdn Bhd