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RAM Ratings affirms AA3 rating of reNIKOLA Solar’s ASEAN Green SRI Sukuk
Published on 10 Sep 2026.
RAM Ratings has affirmed the AA3/Stable rating of reNIKOLA Solar Sdn Bhd’s RM390 mil ASEAN Green SRI Sukuk Programme, reflecting the solar portfolio’s stable operating performance and resilient cash flow coverage under RAM’s sensitised assumptions.
The rating is underpinned by the healthy energy output and consolidated cashflow generation of three solar photovoltaic (PV) plants (the Plants) with a combined capacity of 63.912 MWac. The Plants are owned by the issuer’s sister companies (the Project Companies) and benefit from long-term power purchase agreements with Tenaga Nasional Berhad (issues rated AAA/Stable by RAM), the sole offtaker, which limits revenue counterparty risk.
The Plants have consistently outperformed expectations, with consolidated NEO of 131,099 MWh in 2025 exceeding RAM’s sensitised projection of 123,021 MWh (+6.6%) and the PPAs’ minimum requirement of 70% of DAQ (+33.8%). Lower output from the Arau (-3%) and Gebeng (-5%) plants was more than offset by stronger generation from the Pekan plant, which contributed more than half of total NEO. Aggregate generation in the first five months of 2026 exceeded seasonally adjusted projections by 9.7%, aided by stronger irradiance, while the Plants’ availability remained at 100% in 2025 and year-to-date 2026. Given their performance track record and full availability, we expect future output to stay broadly in line with P90 forecasts, although generation remains exposed to irradiance variability.
The project companies remained operationally profitable in FY Dec 2025. While staff costs at the issuer level increased, overall expenditure stayed within the permitted limit, supported by savings following the appointment of reNIKOLA Management Sdn Bhd as the in-house O&M provider.
RAM’s sensitivity analysis incorporates lower NEO, accelerated plant degradation and higher operating and capital expenditure. Under these assumptions, the Plants are expected to generate average annual pre-financing cash flow of RM33.9 mil over the remaining tenure of the sukuk, with minimum and average post-distribution finance service coverage ratios (including cash balances) of 1.61 times and 1.91 times, respectively. These coverage levels remain commensurate with the rating, supported by insurance coverage, geographic diversification and the Plants’ operating track record, although solar irradiance variability, regulatory developments and force majeure events remain inherent sector risks.
The issuer is wholly owned by reNIKOLA Holdings Sdn Bhd, which is in turn owned by reNIKOLA Sdn Bhd (55%) and B. Grimm Power Sdn Bhd (45%). Intercompany financing agreements between the issuer and the Project Companies support timely servicing of sukuk obligations.
Analytical contacts
Lai Jing Wei
(603) 2708 8239
jingwei@ram.com.my
Chong Van Nee, CFA
(603) 2708 8210
vannee@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
