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RAM Ratings affirms AAA(s) ratings of sukuk programmes at Sarawak state SPVS
Published on 26 Jun 2026.
RAM has affirmed the AAA(s)/Stable issue ratings for Saracap Ventures Sdn Bhd (Saracap), Infracap Resources Sdn Bhd (Infracap) and Aquasar Capital Sdn Bhd (Aquasar), wholly-owned special purpose vehicles (SPVs) of the Sarawak state, via the State Financial Secretary (SFS). Established to raise financing for strategic investments and development projects, the obligations of these SPVs are supported by Annex Letters from the SFS, which ensure that the state budgets for debt service and pre-funds coupon and principal into dedicated reserve accounts at least 14 business days before each due date. While these Annex Letters do not constitute formal guarantees, the Sarawak state government’s strong track record of support underpins the alignment of the SPVs’ ratings with Sarawak’s superior State Implicit Strength (SIS).
Sarawak’s robust credit profile is supported by its substantial financial reserves and strong fiscal performance, both of which are expected to be sustained. High commodity prices driven by the conflict in the Middle East, particularly for crude oil and liquefied natural gas (LNG), are expected to strengthen Sarawak’s revenue generation and fiscal surplus in the near term. This will help the government fund infrastructure development and finance strategic investments without overreliance on external borrowings. Additionally, the rating is anchored by Sarawak’s strong economic importance and significant political influence on the federal government.
The Sarawak government continues to engage with the federal government regarding the transition of Petroleum Sarawak Berhad (PETROS) to the role of sole gas aggregator in Sarawak, a position currently held by Petroliam Nasional Berhad (PETRONAS). This transition is expected to grant the Sarawak government greater control over the utilisation of locally produced natural gas. Additionally, PETROS revenues are expected to increase because of its expanded role, potentially enhancing the state’s long term revenue base. Recently, the Sarawak government completed its takeover of Bintulu Port on 21 June 2026, following the signing of a Tripartite Agreement and Completion Agreement with the federal government and Bintulu Port.
In April 2026, the government set up a new RM10 bil Sukuk Murabahah programme under funding conduit, SaraVent Capital Sdn Bhd. The new programme was structured similarly to the earlier-mentioned SPVs. The initial issuance was unrated and amounted to RM1.85 bil. The proceeds will be used to fund strategic investments and/or infrastructure projects. Sarawak’s relatively low debt-to-GDP ratio and strong cash reserves afford it ample headroom for further borrowings.
Analytical contact
Thong Mun Wai
(603) 2780 8255
munwai@ram.com.my
Nadia Mazlan
(603) 2708 8287
nadia@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
© Copyright 2026 by RAM Rating Services Berhad
