RAM Ratings affirms AA3 rating of reNIKOLA Solar's ASEAN Green SRI Sukuk

RAM Ratings has affirmed the AA3/Stable rating of reNIKOLA Solar Sdn Bhd's RM390 mil ASEAN Green SRI Sukuk Programme, reflecting the solar portfolio's stable operating performance and resilient cash flow coverage under RAM's sensitised assumptions.

The rating is underpinned by the healthy energy output and consolidated cashflow generation of three solar photovoltaic (PV) plants (the Plants) with a combined capacity of 63.912 MWac. The Plants are owned by the issuer's sister companies (the Project Companies) and benefit from long-term power purchase agreements with Tenaga Nasional Berhad (issues rated AAA/Stable by RAM), the sole offtaker, which limits revenue counterparty risk.

Project Company          Commercial Operation Date     Location         Plant Capacity (Mwac)
RE Arau Sdn Bhd            Mar-18         Perlis               3.996
RE Gebeng Sdn Bhd            Jan-20         Pahang              29.916
RE Pekan Sdn Bhd            Jun-21         Pahang              30.000

The Plants have consistently outperformed expectations, with consolidated NEO of 131,099 MWh in 2025 exceeding RAM's sensitised projection of 123,021 MWh (+6.6%) and the PPAs' minimum requirement of 70% of DAQ (+33.8%). Lower output from the Arau (-3%) and Gebeng (-5%) plants was more than offset by stronger generation from the Pekan plant, which contributed more than half of total NEO. Aggregate generation in the first five months of 2026 exceeded seasonally adjusted projections by 9.7%, aided by stronger irradiance, while the Plants' availability remained at 100% in 2025 and year-to-date 2026. Given their performance track record and full availability, we expect future output to stay broadly in line with P90 forecasts, although generation remains exposed to irradiance variability.

The project companies remained operationally profitable in FY Dec 2025. While staff costs at the issuer level increased, ove