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RAM Ratings assigns final AAA rating to Kimanis Power
Published on 24 Jul 2025.
RAM Ratings has assigned a final AAA/Stable rating to Kimanis Power Sdn Bhd’s (KPSB or the Company) Sukuk Wakalah Facility of up to RM300 mil (2025/2035) (the Sukuk). In doing so, we have reviewed all relevant transaction documents and find them to be consistent with our expectations when we assigned the preliminary rating, published on 18 April 2025 (click here).
Our assessment also factors in updates to the transaction structure, including a smaller issue size, revised tranching, final profit rate and principal repayment schedule and KPSB’s latest operating performance.
The final sukuk structure entails a smaller issuance of RM260 mil and a revised redemption structure with the first principal repayment commencing in July 2028 (from May 2025 targeted previously). The smaller issuance size and a final blended profit rate of 3.65% (3.90% targeted previously) led to overall savings in finance costs.
All in all, we are satisfied that the transaction economics, legal structure and credit metrics continue to be commensurate with the assigned AAA/Stable rating. Under RAM’s sensitised case, the transaction’s minimum and average annual finance service coverage ratios (FSCRs, with cash, post-distribution) stand at 1.65 times and 3.99 times, respectively – comfortably meeting the covenanted threshold of 1.65 times. The final rating also incorporates an uplift in accordance with RAM’s enhanced project finance rating framework, reflecting our view of a ‘strong’ likelihood of extraordinary support from PETRONAS Gas Berhad (PGB) – KPSB’s primary sponsor. For more details and a complete analysis, please refer to the final rating rationale.
KPSB is a 60:40 joint venture between PGB and Yayasan Sabah Group. The Company operates a 285 MW combined-cycle gas turbine power plant in Kimanis, Sabah – the state’s largest electricity generator.
Analytical contacts
Tan Yan Choong
(603) 2708 8256
yanchoong@ram.com.my
L Nurisya Abdullah
(603) 2708 8238
nurisya@ram.com.my
Media contact
Sakinah Arifin
(603) 2708 8212
sakinah@ram.com.my
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.
RAM Ratings receives compensation for its rating services, normally paid by the issuers of such securities or the rated entity, and sometimes third parties participating in marketing the securities, insurers, guarantors, other obligors, underwriters, etc. The receipt of this compensation has no influence on RAM Ratings’ credit opinions or other analytical processes. In all instances, RAM Ratings is committed to preserving the objectivity, integrity and independence of its ratings. Rating fees are communicated to clients prior to the issuance of rating opinions. While RAM Ratings reserves the right to disseminate the ratings, it receives no payment for doing so, except for subscriptions to its publications.
Similarly, the disclaimers above also apply to RAM Ratings’ credit-related analyses and commentaries, where relevant.
Published by RAM Rating Services Berhad
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