Uzma, an energy service provider company, announced that through its subsidiary, Uzma Kuala Muda Sdn. Bhd. (UKMSB) successfully secured RM225 million (~$48.44 million) Syndicated Islamic Financing Facilities to support the construction, development, operation, and maintenance of a 50 MW solar project.
Affin Islamic Bank and the Export-Import Bank of Malaysia provided the funding. The project will be constructed at Lot 4, Bukit Selambau, Mukim Kuala Muda, Sungai Petani, Kedah Darul Aman.
This financing marks Uzma’s next important milestone into the large-scale solar phase as the group gears up to start its next construction phase. The funds will primarily be used to finance the development and construction of a 50MWac Large Scale Solar Photovoltaic (“LSSPV”) plant.
Dato’ Kamarul Redzuan Muhamed, Group CEO of Uzma, expressed his enthusiasm for this financing partnership, stating, “The support extended by AFFIN ISLAMIC and EXIM Bank is instrumental in realizing our vision of expanding renewable energy infrastructure in Malaysia. This project aligns with our commitment to sustainable development, and we are confident that it will deliver substantial environmental and economic benefits to the nation.”
Chief Executive Officer of Affin Islamic Bank Berhad, YBhg. Dato’ Paduka Syed Mashafuddin Syed Badarudin said, “AFFIN ISLAMIC is delighted to be a catalyst in the development and construction of Uzma Kuala Muda Sdn Bhd’s 50MWac Large Scale Solar Photovoltaic plant. We remain committed to supporting the needs of the green investment program initiated by the government and companies venturing into sustainable energy, as it represents a commitment to leveraging AFFIN’s expertise, scale, and reach to support our valued customers through the shift to sustainability.”
According to Mercom’s Q1 2023 Solar Funding and M&A report, large-scale project funding came to $5.3 billion in 62 deals, a decrease of 46% compared to $9.8 billion in 52 deals in Q4 2022. Vena Energy, an independent solar power producer, recently secured a JPY16.9 billion (~$121 million) green loan for the 53 MW Kasama solar project. MUFG Bank led the JPY16.9 billion (~$121 million) financing arrangement with co-financing by Joyo Bank in Japan.