Aizo's Unit Secures RM346.19 Mln Islamic Financing Facilities To Support Solar Project In Kampar
KUALA LUMPUR, June 18 (Bernama) -- Aizo Group Bhd’s subsidiary, Wawasan Demi Sdn Bhd, has secured Islamic financing facilities of up to RM346.19 million from Bank Pembangunan Malaysia Bhd (BPMB).
In a filing with Bursa Malaysia, the company said the facilities will be utilised to support the development of a large-scale solar photovoltaic (LSSPV) plant in Kampar, Perak.
Aizo said the total facilities comprise a Tawarruq Asset Financing (TWA) facility of up to RM256.0 million, alongside bank guarantee facilities totalling RM90.19 million, which will primarily support project execution requirements and contractual obligations under a power purchase agreement (PPA) with Tenaga Nasional Bhd (TNB).
It added that the TWA facility will be used to part-finance up to 80 per cent of the project’s engineering, procurement, construction, and commissioning (EPCC) costs.
Meanwhile, the bank guarantee facilities will serve as performance guarantees in favour of TNB for project delivery milestones.
Executive chairman Datuk Abang Abdillah Izzarim said the financing facilities represent a key milestone in advancing Aizo’s renewable energy (RE) initiatives.
He said the Kampar LSSPV project is a strategic asset that will contribute to Aizo’s long-term growth, while supporting Malaysia’s transition towards sustainable energy.
“With a substantial portion of the project cost now secured, we are well-positioned to accelerate implementation and execution.
“The development also strengthens Aizo’s recurring income potential through long-term power generation under the TNB power purchase framework,” he said.
Upon completion and commissioning, the solar plant is expected to provide stable and predictable income streams, underpinned by long-term contractual arrangements.
Looking ahead, Aizo remains focused on executing the Kampar solar project efficiently while continuing to explore opportunities within the RE and infrastructure space, in line with national energy transition policies and growing demand for clean power solutions.
-- BERNAMA