KUALA LUMPUR: Cypark Resouces Bhd has raised RM100 million from the second tranche of its remaining RM265 million perpetual sukuk.
The RM100 million was raised through wholly-owned subsidiary Cypark Renewable Energy Sdn Bhd (CRE).
The balance of RM165 million will be issued later.
These issuances are part of Cypark's perpetual sukuk musharakah programme of up to RM500 million established in June 2020.
CRE had issued the first tranche of RM235 million earlier and was fully subscribed.
"The proceeds raised from the Tranche 2 issuance shall be utilised for working capital, capital expenditure, repayment of existing financing/borrowings, defraying costs and other expenses related to the perpetual sukuk Musharakah programme issuance," Cypark said on Tuesday.
RHB Investment Bank Bhd was the principal adviser, lead arranger and lead manager for the perpetual sukuk Musharakah.
It was also the lead manager for the Tranche 2 issuance.
"We are pleased to see this strong support and the commitment from our major shareholder, Jakel Capital Sdn Bhd, that they will subscribe the full issuance size of up to RM265 million," said Lindayani Tajudin, deputy chief executive officer of Cypark.
The sukuk issuance will provide sufficient capital requirement for Cypark.
"We are confident that our ongoing renewable energy projects will be completed by the targeted completion dates, which will also set forth the company's future growth.
"Cypark is ready to actively participate in the recently-announced National Energy Transition Roadmap that set a target to increase Malaysia's renewable energy mix to 70 per cent by 2050," Lindayani said.
"We are pleased to subscribe to the Tranche 2 issuance amounting to RM100 million issued by CRE
and the remaining RM165 million to be issued in due course," Jakel Capital CEO Muhammad Ashraf said.
"This capital infusion reaffirms our strong commitment towards our investment in Cypark and its transformative journey in the dynamic renewable energy sector," he added.