Malakoff achieves financial close for three small hydropower plants in Kelantan

KUALA LUMPUR - Malakoff Corporation Bhd has achieved financial close for the development of three run-of-river small hydropower plants (SHPs) along Sungai Galas in Kuala Krai, Kelantan.

The independent power producer (IPP) said the three SHPs have a total installed capacity of 84.0 megawatts (MW), namely Kemubu SHP (29.0MW), Kuala Geris SHP (25.0MW) and Serasa SHP (30.0MW).

"The project (which is 70 per cent owned by its wholly owned unit Tuah Utama Sdn Bhd) will be financed via a combination of Asean Green SRI sukuk wakalah issuance of RM975.0 million in nominal value and shareholders’ equity contribution, based on a finance-to-equity ratio of 80:20,” it said in an exchange filing today.

Malakoff said the project will mark its entry into the hydropower generation business and is in line with its strategic transformation initiatives, where small hydro has been identified as a key growth area within its renewable energy portfolio.

"Furthermore, the project is aligned with Malaysia’s Renewable Energy Roadmap to leverage hydro’s full potential as one of the technology specific pillars towards achieving a low carbon energy industry,” it said. - Bernama