AIZO Group Bhd’s subsidiary, Wawasan Demi Sdn Bhd, has secured Islamic financing facilities of up to RM346.19 million from Bank Pembangunan Malaysia Berhad to support the development of a large-scale solar photovoltaic (LSSPV) plant in Kampar, Perak, strengthening the company’s push into the renewable energy sector.
In a statement, AIZO said the financing package comprises a Tawarruq Asset Financing facility of up to RM256 million and bank guarantee facilities totalling approximately RM90.19 million.
“The funding will be used to support the construction and execution of the solar project, including obligations under its power purchase agreement with Tenaga Nasional Bhd,” Executive Chairman Datuk Abang Abdillah Izzarim said, while highlighting that upon completion, the Kampar solar project is expected to generate stable recurring income through long-term power generation contracts.
He shared that the Tawarruq financing facility will fund up to 80% of the engineering, procurement, construction and commissioning costs of the project, while the bank guarantees will serve as performance guarantees tied to project delivery milestones.
“The financing support also complements the company’s recently approved corporate exercises, including a private placement, capital reduction and rights issue with free warrants, aimed at strengthening its balance sheet and supporting future growth initiatives.
“While gearing levels are expected to rise following full utilisation of the facilities, AIZO said the project is anticipated to contribute positively to earnings once operational,” he said.
