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RAM Ratings affirms AA3(bg)/Stable rating on Heliosel’s RM145 mil Guaranteed IMTN
Published on 18 Sep 2026.
RAM Ratings has affirmed the AA3(bg)/Stable rating on Heliosel Sdn Bhd’s (Heliosel or the Company) RM145 mil Guaranteed IMTN under its RM 2 bil Sukuk Murabahah Programme (Sukuk Programme). The issue rating reflects the irrevocable and unconditional guarantee extended by Bank Islam Malaysia Berhad (rated AA3/Stable/P1 by RAM).
Established in December 2021, Heliosel is a renewable energy (RE) solutions provider focused on solar power generation. The Company is wholly owned by Air Selangor Holdings Berhad (AIH) and ultimately by Menteri Besar Selangor (Incorporated) (MBI or the Group).
Under the Group’s THRIVE28 (2024-2028) transformation and transition plan through a more centralised and strategically coordinated investment holding structure, Heliosel is expected to expand from the water segment to MBI’s energy and utilities platform, consistent with its intended strategic role as the Group’s RE platform. These new initiatives and momentum in MBI’s THRIVE28 execution to centralise funding decisions, oversight and governance at the Group underpin our reassessment of a ‘high’ likelihood of extraordinary support from MBI. The transaction’s ownership covenant requiring Heliosel to remain at least 51% owned by Selangor (via MBI) and the recent injection of RM4.3 mil of new equity, reinforce this view, notwithstanding the discretionary nature of such support.
The Company’s short operating history, reflective of its limited scale moderates its credit profile. Heliosel’s operating scale is expected to materially expand to beyond 300 MWp of installed capacity by end-2027, with the proposed acquisition of 277MWp of operational large-scale solar (LSS) assets and ongoing solar development projects, from just 37.3 MWp as at September 2026. While revenue doubled to RM9.6 mil in fiscal 2025 and pre-tax profit rose to RM1.4 mil, its earnings profile (net of depreciation and financing costs), is expected to remain modest over the medium term and is expected to meaningfully pick up from 2029 onwards as new assets commence operations.
Heliosel’s expansion into LSS asset ownership will significantly enlarge and diversify its earnings base and offtake counterparty exposure beyond the Renewable Energy for Water (RENEW) arrangement with Air Selangor, whilst enhancing revenue and cash flow visibility through long-dated contracted agreements. While the assets are expected to provide immediate recurring income, this may introduce additional integration, asset management and funding risks. Successful execution will require Heliosel to demonstrate effective acquisition and funding execution, manage a substantially larger and geographically diverse asset portfolio whilst maintaining strong operational oversight. The Company’s experienced management, RE and utility expertise will support the planned expansion.
The Company’s liquidity and capitalisation remain key credit weaknesses. As at end-May 2026, Heliosel held RM6.7 mil of cash balances against substantial debt and capex commitments. Its narrow capital base, limited internally generated cashflow and largely debt-funded expansion will keep leverage elevated and free cashflow negative over the near term. Consequently, Heliosel remains dependent on continued access to external funding and shareholder support to support its development pipeline, acquisition plans and debt-servicing obligations.
Analytical contacts
Lee Jo Yee
(603) 2708 8261
joyee@ram.com.my
Davinder Kaur Gill
(603) 2708 8220
davinder@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
