ES Sunlogy Bhd to Develop 155MWp Solar Power Plant in Sarawak for RM488.18mil

ES Sunlogy Bhd, a mechanical and electrical engineering services company, is set to develop a large-scale solar photovoltaic power plant in Long Lama, Baram, Sarawak, in partnership with Planet QEOS Sdn Bhd. The project, which will have a capacity of 155MWp, is expected to be funded through a combination of bank borrowings and internally generated funds, with a proposed ratio of 80:20. The company is currently in discussions with two banking institutions to secure the necessary financing facilities for the investment in the joint venture.

Key Takeaways:

The 155MWp solar power plant will be developed in Long Lama, Baram, Sarawak, at a cost of RM488.18mil.
The project will be funded through a combination of bank borrowings and internally generated funds, with a proposed ratio of 80:20.
ES Sunlogy Bhd is currently in discussions with two banking institutions to secure the necessary financing facilities for the investment in the joint venture.
The pre-development period for the project is estimated to be not later than 18 months from the date of the agreement.
Project commencement is expected to take place following the pre-development phase, with targeted completion no later than the end of 2027.
In the event of a funding shortfall or where additional cash equity is required beyond bank loans for the project, ES Sunlogy Bhd intends to meet such funding requirements via equity fundings.
The company plans to issue new shares to interested investors, subject to prevailing market conditions and approvals from Bursa Securities, shareholders, and relevant authorities, through a private placement exercise of up to 30% of its enlarged share capital.
The definitive joint venture agreement is expected to be negotiated and executed within the 18-month pre-development period.

Statistics:

Total project cost: RM488.18mil
Proposed funding ratio: 80:20 (bank borrowings:internally generated funds)
Pre-development period: not later than 18 months
Targeted completion date: no later than the end of 2027
Private placement exercise: up to 30% of enlarged share capital

Sources:

ES Sunlogy Bhd's reply to a query from Bursa Malaysia