Posted by Johnchew5 > 2023-07-16 11:29 | Report Abuse

Case study: JAKS Solar Nibong Tebal’s multilateral financing facility

By
Marlena Kareem
January 31, 2023

JAKS Solar Nibong Tebal (JAKS Solar), a wholly-owned subsidiary of JAKS Resources, obtained a RM112.5 million (US$26.5 million) financing facility from AmBank Islamic in March 2022 as part of a multilateral financing facility worth RM220 million (US$51.82 million).


AmBank Islamic provided the Islamic portion of the facilities while United Overseas Bank (UOB) provided conventional facilities worth RM125 million (US$29.44 million).


The facilities will fund the development of a 50 MW fourth large-scale solar (LSS4) photovoltaic plant in Seberang Perai Selatan, in the state of Penang in Malaysia in addition to financing working capital requirements.


While JAKS Resources’s principal activity is the construction of power plants, JAKS Solar was incorporated specifically to undertake the development of the LSS4 photovoltaic plant in Penang.

The underlying asset for the multilateral facility is the solar plant which is inherently a sustainable power generation facility.
The Islamic facilities in the multilateral financing comprise a Murabahah Tawaruq term financing facility worth RM80 million (US$18.84 million), two bank guarantees worth RM27.5 million (US$6.48 million) combined and a Murabahah Tawaruq cash line facility worth RM5 million (US$1.18 million).


The bank guarantees consist of a RM10 million (US$2.35 million) facility with a complementary term financing facility with a limit of up to RM10 million and a second bank guarantee of RM17.5 million (US$4.12 million) with a Murabahah Tawarruq complementary term financing facility with a limit of up to RM17.5 million.


According to Ng Kit Ho, the senior vice-president of loan markets and debt markets 1 at AmInvestment Bank, the primary challenge faced by the bank in executing the financing facility was the time constraint.


“The time between execution of the power purchase agreement and financials was extremely tight (four months) and was over the festive period,” Ng told ISFI.


According to Albar & Partners, which acted as the legal counsel on behalf of the financiers in this multilateral financing facility, the guarantees required in the facility also posed a challenge.


“Tenaga Nasional, as the off-taker of the power project, would only accept one single performance guarantee for the performance of the borrower under this power project, therefore AmBank Islamic and UOB were required to enter into a fronting arrangement for AmBank Islamic to issue a bank guarantee to UOB as a fronting guarantor, who shall then issue its own conventional bank guarantee to TNB as the performance bond of the power project on behalf of the borrower,” the law firm shared.


While sustainability-linked financing is steadily increasing in popularity as a financing cost-saving mechanism, Ng shared that JAKS Solar had considered sustainability-linked financing but ultimately decided against it.

Posted by Johnchew5 > 2023-07-16 11:30 | Report Abuse

Listed on Bursa Malaysia’s Main Market, JAKS Resources’s activities also include construction, power, energy and property investment and it is involved in the development of residential and commercial properties. Its principal geographical areas for its operations are located in Malaysia and Vietnam.


JAKS Solar Nibong Tebal: multilateral financing facility

RM112.5 million (US$26.5 million)

March 2022


Summary of terms and conditions
Islamic facilities amount RM112.5 million (US$26.5 million)
– Term financing facility RM80 million (US$18.84 million)
– Bank guarantees RM27.5 million (US$6.48 million)
– Cash line facility worth RM5 million (US$1.18 million)
Type of facility Mixture of project finance and working capital facilities.
Use of proceeds 1. Working capital requirements
2. Project costs including engineering, procurement, construction and commissioning works, professional fees, land leases and related expenses
3. Prefunding debt service reserve account
4. Financing cost of the facilities during construction
5. Fees and expenses in relation to the facilities
Tenor Term financing facility: Up to 16.5 years (inclusive of an 18-month grace period)
Cash line facility: On demand
Bank guarantees: Up to two years (inclusive of claim period)
Profit rate/yield Undisclosed
Payment frequency Term financing facility: Monthly
Cash line facility: Quarterly/on demand
Bank guarantees: Not applicable
Legal advisor Albar & Partners
Governing law Malaysian law

Posted by Sslee > 2023-07-16 11:37 | Report Abuse

LSS4 IRR is a poor single digit.
With borrowing of RM220 million and at increase interest payment will Jaks Solar Nibong Tebal make any profit?

JAKS Solar Nibong Tebal (JAKS Solar), a wholly-owned subsidiary of JAKS Resources, obtained a RM112.5 million (US$26.5 million) financing facility from AmBank Islamic in March 2022 as part of a multilateral financing facility worth RM220 million (US$51.82 million)

Posted by Johnchew5 > 2023-07-16 12:11 | Report Abuse

Posted by Johnchew5 > 1 week ago | Report Abuse

LSS4 projects to get four-year PPA extension

By Adam Aziz / theedgemarkets.com
02 Aug 2022, 08:30 am
Updated - 01:35 pm


KUALA LUMPUR (Aug 2): Bidders of Malaysia’s fourth round of large scale solar awards (LSS4) will have their power purchase agreements (PPAs) extended by four years to 25 years, from 21 previously, according to sources.


This appears to be a concession the Energy Commission (EC) is making in consideration of how the viability of certain projects have been affected, following a 30%-50% jump in solar panel prices — compared to when they submitted their bids in 2020.


A number of project owners have also requested for the EC to review the electricity bid prices, considering the challenging environment, but this has been rejected by the regulator.


Nevertheless, the PPA extension, which could be finalised by the EC as early as this week, would provide a relief to companies whose internal rate of return (IRR) could now return to the high single-digit percentage forecasted in the bids they submitted before the price shock.



LSS4, which will have a total quota of 823.06 megawatt (MW), saw intense competition during the bidding stage, which contributed to some companies putting in aggressive bids that incorporated a declining trend in solar panel prices — which suddenly reversed course during the pandemic.

Posted by Johnchew5 > 2023-07-16 12:14 | Report Abuse

Hoho Jaks is the First Company which completed n commencing commission at Current Quarter on LSS4 Project among 10 awarded companies.

Posted by Johnchew5 > 2023-07-16 12:17 | Report Abuse

The extension is believed to be aimed at helping the LSS4 project owners address the rising cost of solar modules, partly attributed to the disruptions in the global supply chain.

In fact, the lowest price bid for the LSS4 programme (17.68 sen per lcWh) was lower than that in the three previous rounds — 39 sen per lcWh for LSS1,33.98 sen per lcWh for LSS and 17.78 sen per kWh for LSS3.

Talcing into consideration the higher costs, the LSS4 owners' bids appear to be unrealistic, causing a huge discrepancy with the current
situation. Since 2020, the price of solar mod- ules has gone up 30% to 50%, raising concerns about their ability to recoup their investments.

In the event that operating costs continue t o r i s e , w i l l t h e PPAs b e f u r t h e r e x t e n d e d ? T h e LSS4 winners are expected to start producing electricity for the grid by end-2023,

>> failing which liquidated and ascertained damages will be imposed on them.

Posted by Johnchew5 > 2023-07-16 12:22 | Report Abuse

Hoho repost partially on LSS4 Loan facility:

RM112.5 million (US$26.5 million)
– Term financing facility RM80 million (US$18.84 million)

– Bank guarantees RM27.5 million (US$6.48 million)

– Cash line facility worth RM5 million (US$1.18 million)


Term financing facility: Up to 16.5 years (inclusive of an 18-month grace period)
Cash line facility: On demand
Bank guarantees: Up to two years (inclusive of claim period).

Posted by Johnchew5 > 2023-07-16 12:37 |

Post removed.Why?

Posted by Johnchew5 > 2023-07-17 08:05 | Report Abuse

Hoho Jaks has been Completed Vietnam Power Plant and LSS4 50 MW Solar Projects which shl provide steady income for ard 25 years .Let’s see coming QR result by Next month ?

Posted by Johnchew5 > 2023-07-17 15:42 | Report Abuse

Hoho I am scared also when Read on this :

Referred to FY23 , 1 QR ended March 2023 :

Cash Flow from Operating Activities :

( RM 894,000 )

But >> Purchase of PPE and Right of Use :

( RM 31,082,000 )

And
Share Capital : 1,074,143,000

Reserves . : 26,200,000


> Accumulated Profit : 324,951,000 ( Audited as on December 2022 is RM 310,874 ,000 )


Non controlling interests : ( 61,658,000 )


Total equity : RM 1,363,636,000

—

Each Quarter Requires at Least Cash Flow :

Financial Cost : ( RM 5,723,000 ) / quarter


Other Operating, Administrative Expenses :


( RM 14,875,000 ) / quarter


>>> Let’s see 2QR Result ended June 2023 by August . 🙏..

Posted by soon9913 > 2023-07-18 13:14 | Report Abuse

johnchew , dont spamming la. share important and latest info pls.

Posted by soon9913 > 2023-07-18 13:14 | Report Abuse

why not u convey our msg to the boss? let his partner huat together instead of he huat himself only by awarding him so much of share grant

Posted by i3lurker > 2023-07-18 13:24 | Report Abuse

Dun be silly!!
Its highly affordable.
=> Everybody only pays less than 10% of amount borrowed and all overdue interest is cancelled ....
... after company goes PN17


Posted by Sslee > 2 days ago | Report Abuse

LSS4 IRR is a poor single digit.
With borrowing of RM220 million and at increase interest payment will Jaks Solar Nibong Tebal make any profit?

JAKS Solar Nibong Tebal (JAKS Solar), a wholly-owned subsidiary of JAKS Resources, obtained a RM112.5 million (US$26.5 million) financing facility from AmBank Islamic in March 2022 as part of a multilateral financing facility worth RM220 million (US$51.82 million)

Posted by Johnchew5 > 2023-07-18 14:20 | Report Abuse

Hoho why no facts n figures from u !!!




Posted by soon9913 > 1 hour ago | Report Abuse

johnchew , dont spamming la. share important and latest info pls.


soon9913
soon9913 | Joined since 2011-12-14

Posted by Asengkianjoo > 2023-07-18 14:27 | Report Abuse

Gotyou

The sole purpose of this article is to demonstrate by rough estimation that Jaks maybe facing tight cash flow over the next few year mainly because of the short 10 years tenure of JHDP loan. As a big portion of the distributable cash in JHDP will be utilised for repayment of borrowings thus resulting in much less amount for dividend distribution. Nonetheless, this article does not assume that Jaks will default on its loan repayments. By all means, Jaks can refinance its borrowings or carry out fund raising exercises through private placements/ rights issues to address its cash flow deficiencies.

Posted by Asengkianjoo > 2023-07-18 14:32 | Report Abuse

Sslee

By all means, Jaks can refinance its borrowings or carry out fund raising exercises through private placements/ rights issues to address its cash flow deficiencies.

Only after 2030 the dividend from JHDP should be able to pay off the borrowing in X years. So no cash dividend for the next xx years

Posted by Asengkianjoo > 2023-07-18 14:34 | Report Abuse

Asengkianjoo

Well done gotyou . What we want is a fair and unbiased view . A reasonable deduction is not always not always necessary a right deduction . You recent RI deduction is a good example . Dk indepth calculation is another . So a responsible writer never like to guess when the dividend will be paid out because it is itself already a biased view

Posted by Asengkianjoo > 2023-07-18 14:38 | Report Abuse

Jaks cash squeeze is a well know fact . But it doesn't mean ots net worth is negative . At the current price it is trading at more than 80 % discount of its audited NTA , have we not a slightest thought that the value of the buy call has emerged.

Posted by soon9913 > 2023-07-18 16:00 | Report Abuse

NTA doesnot mean anything, can be impaired anytime...

Posted by soon9913 > 2023-07-18 16:12 | Report Abuse

many co with huge NTA but was impaired 90% in one year time

Posted by Asengkianjoo > 2023-07-18 16:41 | Report Abuse

Give an example. Which company has its audited NTA impaired 90% . I have not seen it before . You certainly had . If not it is very irresponsible and misleading

Posted by Johnchew5 > 2023-07-18 16:43 | Report Abuse

Hoho became Tukang Tilik pulak from a Senior member since 2011 ???


Posted by soon9913 > 29 minutes ago | Report Abuse

many co with huge NTA but was impaired 90% in one year time

Posted by soon9913 > 2023-07-18 16:45 | Report Abuse

serbak lo

Posted by soon9913 > 2023-07-18 16:45 | Report Abuse

cypark also got huge impairment but not 90% yet

Posted by soon9913 > 2023-07-18 16:47 | Report Abuse

im new la. i joined in year 2023 Jun

Posted by Asengkianjoo > 2023-07-18 16:57 | Report Abuse

Not a right thinking logical mind will believe a company with a earning potential of consistent income of over RM200 will go bankrupt. If jaks won't go bankrupt, the negative cash is just a normal business operation process. common sense is NOT true knowledge. Big money is made in the waiting and belong to those who has the courage to act differently and the wisdom to see the gold in the trash .

Posted by Asengkianjoo > 2023-07-18 17:01 | Report Abuse

soon9913

im new la. i joined in year 2023 Jun ................ then Ma Yun will slap you

Posted by soon9913 > 2023-07-18 17:02 | Report Abuse

haha you are right

Posted by soon9913 > 2023-07-18 17:03 | Report Abuse

thats why we are at the same boat

Posted by Johnchew5 > 2023-07-18 17:03 | Report Abuse

Hoho ya jadi Tukang Tilik baru Saja!!! Hahaha..

Posted by Asengkianjoo > 2023-07-18 17:04 | Report Abuse

Gotyou will ignore you . Because what you said will make a qualified accountant lose his job

Posted by soon9913 > 2023-07-18 17:07 | Report Abuse

0..19 today.. TP 0.26 next

Posted by ncy810116 > 2023-07-18 17:07 | Report Abuse

coming soon...

Posted by soon9913 > 2023-07-18 17:09 | Report Abuse

if i simply said something will cause u lose your job, then u are not qualified ady

Posted by Johnchew5 > 2023-07-18 17:13 | Report Abuse

Hoho SD the 5 years Account Books are Too Good Too be True .. same like PTRB 5 years Account Books right after Listed are Too Good …

For Jaks , I had Less worries as the Management managed the Gearing Ratio in Control manner .

And the 2 Project for 25 years concession , is not with separate Maintenance Management contracts that can be in Huge Amounts but can be Variable on Time .

Posted by soon9913 > 2023-07-18 17:13 | Report Abuse

john, i still think u have insider news le. can you share more pls

Posted by Asengkianjoo > 2023-07-18 17:45 | Report Abuse

what we can know about Jaks , already made known . what we can not know , nobody know But evryone know , when TA and FA can not help , then it is time to use you own intuition .

Posted by Asengkianjoo > 2023-07-18 17:47 | Report Abuse

if you dare to fail, then you are dare to be different with a good reason

Posted by Asengkianjoo > 2023-07-18 17:49 | Report Abuse

my intuition told me , now Jaks is trading at 0.19 with a consistent earning of more than 200M . it is worth to act differently or ask yourself a question , do you have a better opportunity to make a 100% elsewhere at the current price

Posted by soon9913 > 2023-07-18 17:56 | Report Abuse

im targeting 300%

Posted by Asengkianjoo > 2023-07-18 17:57 | Report Abuse

why not we have competition , if I enter now and I can not make a 100% within 1 year from now(18.07.2023) then I donate RM500 to unicef. if I can , then I donate RM1000. anyone wish to join the competition ? if you can ,then donate RM1000. if not , then RM500. show me your courage and confidence NOT just talk

Posted by i3lurker > 2023-07-18 18:04 | Report Abuse

COP26
Key Takeaways

October 28, 20218:55 AM GMT+8Updated 2 years ago
SHANGHAI, Oct 28 (Reuters) - The world will need to shut down nearly 3,000 coal-fired power plants before 2030 if it is to have a chance of keeping temperature rises within 1.5 Celsius, according to research by climate think tank TransitionZero.

its just 7 years away.

shut down or die
many people prefer to DIE

Posted by soon9913 > 2023-07-18 18:09 | Report Abuse

i have no confidence yet

Posted by Johnchew5 > 2023-07-18 18:28 | Report Abuse

Local governments in China approved more new coal power in the first three months of 2023 than in the whole of 2021, according to official documents.23 Apr 2023

Posted by Johnchew5 > 2023-07-18 18:30 | Report Abuse

The report noted that robust coal demand and high prices during the energy crisis in 2022 are also feeding through into higher global investment. Coal investment had increased to $135 billion globally in 2022, up 20% on year, and is expected to rise to $150 billion in 2023.26 May 2023

Posted by Johnchew5 > 2023-07-18 18:31 | Report Abuse

Imports may take a hit. Over time, growing pressure to phase out coal, as articulated in China's dual carbon pledge to peak CO2 emissions before 2030 and reach net-zero by 2060, means that China will cap coal capacity additions and gradually phase out coal usage, according to the paper.

26 Jun 2023

Posted by Johnchew5 > 2023-07-18 18:33 | Report Abuse

Remember Do 3 Own : Own Homework, Own Analysis n Own DecisionS as only you know your Risk level . 



DecisionS: is changed Upon new information, new facts n figures.

Posted by Asengkianjoo > 2023-07-18 20:27 | Report Abuse

this counter is not an easy play if you do not vave a lion heart

Posted by Asengkianjoo > 2023-07-18 20:38 | Report Abuse

shut down is good . I support the shut down . I love the earth . if there is a shut down by Vietnamese order, then there is a compensation . UNICEF will receive my RM1000 earlier

Posted by Asengkianjoo > 2023-07-18 20:45 | Report Abuse

undertand my logic ? need an explanation ? when there is no shut down , then no point to talk about it . when there is a shut down , then Jaks is cash rich