KUALA LUMPUR (Sept 12): Cypark Resources Bhd’s unit Cypark Renewable Energy Sdn Bhd (CRE) has issued the second tranche of its remaining Perpetual Sukuk Musharakah of up to RM265 million for working capital and repayments of borrowings.

Cypark said its 22.51% shareholder, Jakel Capital Sdn Bhd will fully subscribe to the RM265 million perpetual sukuk issuance.

The amount issued under the second tranche is RM100 million in nominal value with the balance of fully committed RM165 million to be issued at a later date, both on an unsecured basis, the company said in a statement on Tuesday.

The proceeds raised from the second tranche will also be utilised to defray costs and other expenses in relation to the issuance of the perpetual sukuk.

These issuances are part of the Perpetual Sukuk Musharakah Programme of up to RM500 million which was established by the company in June 2020.

As at end-April, the group had RM232.96 million in perpetual sukuk outstanding.

Short-term borrowings stood at RM252.34 million with long-term borrowings coming in at RM1.19 billion. Deposits, cash and bank balances stood at RM155.62 million, down from RM224.89 million a year ago.

In its latest quarter ended April 30, 2023, the group fell into the red for the first time since its 2010 listing with net loss of RM298.48 million, dragged by impairments and provisioning of RM376 million.

The sum includes a one-off provision for potential liability due to delays in existing projects, and impairments that include outstanding receivables and intangible assets for its waste-to-energy (WTE) project in Ladang Tanah Merah, Negeri Sembilan.

Quarterly revenue came in at RM32.21 million, also its weakest since listing.

Cypark, whose ongoing projects include the 172 megawatt-peak (MWp) large scale solar (LSS) plant in Terengganu, and 98MWp LSS2 floating plant in Kelantan, said it is confident of completing the projects by the targeted deadline of December 2023.

The sukuk issuance will provide “sufficient capital requirement”, it said.

RHB Investment Bank Bhd is the principal adviser, lead arranger and lead manager for the programme, and is also lead manager for issuance of the second tranche.

Cypark’s shares rose three sen or 3.87% to close at 80.5 sen, giving it a market capitalisation of RM623.76 million.