[RAM] RAM Ratings assigns final AA1 rating to Kimanis Power Dua's RM580 mil Sukuk Wakalah

RAM Ratings has assigned a final AA₁/Stable rating to Kimanis Power (Dua) Sdn Bhd’s (KPSB2) RM580 mil Sukuk Wakalah Facility (2026/2046), confirming its earlier preliminary assessment following RAM’s review of transaction documentation. The preliminary rating was published on 29 January 2026 (click here).

The final rating also considers developments since the preliminary assessment, including a revised financial close date and lower than previously assumed final profit rates, which together reduced total project costs. In addition to Sabah Energy Corporation Sdn Bhd’s (SEC) commitment to supply gas as per the Gas Supply Agreement (GSA), KPSB2 will engage SEC and the Single Buyer to implement the necessary post-issuance amendments to the GSA and the power purchase agreement (PPA), respectively, to formalise additional charges related to gas volumes in excess of base allocation, and provide for the pass-through of such charges to end consumers in the PPA, to which the Energy Commission of Sabah has indicated no objection. Nevertheless, RAM considers excess gas utilisation to be unlikely, based on the estimated load factor of KPSB2’s 100 MW gas-fired peaking power plant in Kimanis, Sabah (the Plant or the Project).

Construction delays as at end-February 2026 remain within RAM’s assumed three-month buffer from the scheduled commercial operation date. We expect finance service coverage ratios (with cash, post-distribution) to stay above 1.50 times over the sukuk’s tenure, supported by the transaction’s contractual framework, legal structure and projected credit metrics.

The rating incorporates an uplift, reflecting our view that Petronas Gas Berhad (PGB), is ‘highly likely’ to provide support beyond its contractual obligations if necessary, given its role as the transaction’s principal sponsor and the Project’s strategic importance to PGB’s expansion in Sabah.

KPSB2 is a 60:40 joint venture between PGB, (through wholly owned PG Energia Sdn Bhd) and NRG Consortium (Sabah) Sdn Bhd, a state-linked entity wholly owned by Yayasan Sabah Group. The Plant, scheduled to start commercial operations on 1 June 2026 under a 21-year power purchase agreement with Sabah Electricity Sdn Bhd. The facility will be Malaysia’s first large-scale gas engine facility.

For further details, please refer to RAM’s final rating rationale.


Analytical contacts
L Nurisya Abdullah 
(603) 2708 8238
nurisya@ram.com.my

Tan Yan Choong
(603) 2708 8256
yanchoong@ram.com.my

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(603) 2708 8212
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