RAM Ratings assigns final AA2 rating to reNIKOLA Solar II’s ASEAN Green SRI Sukuk Programme

Published on 27 Sep 2023.

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RAM Ratings has assigned a final AA2/Stable rating to reNIKOLA Solar II Sdn Bhd’s (reNIKOLA Solar II or the Issuer) RM390 mil ASEAN Green SRI Sukuk Programme (2023/2041). In doing so, we have reviewed all relevant transaction documents and assumptions applied and found them to be in line with our expectations when the preliminary rating was assigned on 31 July 2023. RAM Sustainability Sdn Bhd is the second opinion provider for reNIKOLA Holdings Sdn Bhd’s (reNIKOLA Holdings, parent company of the Issuer) Green Financing Framework – the Sukuk’s use of proceeds is in line with reNIKOLA Holdings’ Green Financing Framework. The sukuk was certified by the Climate Bonds Initiative on 28 July 2023.

reNIKOLA Solar II is a wholly owned subsidiary of reNIKOLA Holdings, which is in turn 55% owned by reNIKOLA Sdn Bhd and 45% owned by B. Grimm Power (Malaysia) Sdn Bhd (a subsidiary of B. Grimm Power Public Co. Ltd.). reNIKOLA Solar II was set up to raise funds to refinance the development costs of two 30 MWac solar photovoltaic plants (collectively, the Plants) in Kuala Muda, Kedah and Machang, Kelantan, which are already operational. A portion of the proceeds will be utilised to reimburse the cost of three parcels of land held by Kuala Muda Estate Sdn Bhd (KMESB), Machang Estate Sdn Bhd (MESB) and Machang Estate (II) Sdn Bhd (ME2SB). The Kuala Muda and Machang plants sit on land held by KMESB and MESB while the land held by ME2SB is presently vacant. 

Overall, we are satisfied that the transaction economics and credit metrics remain commensurate with an AA2/Stable rating. For more details and a complete analysis, please refer to the final rating rationale.


Analytical contacts
Lee Jo Yee
(603) 3385 2583

Chong Van Nee, CFA
(603) 3385 2482

Media contact
Sakinah Arifin
(603) 3385 2500


The credit rating is not a recommendation to purchase, sell or hold a security, inasmuch 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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Published by RAM Rating Services Berhad
© Copyright 2023 by RAM Rating Services Berhad

Rating Rationale

Ratings on reNIKOLA Solar II Sdn Bhd