KUALA LUMPUR: Cypark Resources Bhd says it is committed to its solar projects in Kelantan and Terengganu and has sufficient funds to deliver the projects.
Hence, the company said it had decided to defer a coupon payment due on March 4 for its perpetual sukuk.
"Cypark remains firmly committed to delivery of our 270 megawatts of solar projects in Kelantan and Terengganu and as such has taken the decision to defer a March 4 2024 coupon payment on our perpetual sukuk to prioritise funds towards the completion of the projects in the second quarter of 2024," it said today.
"The deferment, allowable by terms of the perpetual sukuk, is a strategic decision as part of Cypark'e debt optimisation in aligning facilities against long-term concession assets," it added.
Cypark said the sukuk remains secured as it takes 95 per cent cash sweeps from revenue generated, amounting to RM86.5 million currently.
"Cypark has sufficient cash flow to achieve COD (commercial operation date of its ongoing projects following the support by its major shareholder via a RM265 million sukuk in the fourth quarter of 2023 as well as available banking facilities from its principal bankers," it added.
RHB Investment Bank is the principal adviser/lead arranger for all three tranches of the unrated perpetual sukuk Musharakah programme of up to RM500 million issued in 2020 and 2023.